NEXO Token Sees Huge Spike After Latest BuyBack Addition

Crypto lending platform Nexo had on Tuesday allocated an additional $50 million to the company’s buyback initiative. The long-standing initiative from the company last saw the infusion of $100 in May this year. The latest approval enables the company to “discretionally and periodically repurchase its native Nexo token” in the market. Meanwhile, the buyback announcement led to a brief spike in the token’s price, which thereafter made a slight correction.

Nexo Buyback Allocation

The company said the new fund allocation to the buyback program comes at a time when it maintains a solid liquidity position. The lending platform said it is working towards rolling out encouraging initiatives for injecting liquidity into the crypto ecosystem. Antoni Trenchev, cofounder and managing partner of Nexo, said the company is also ready to push towards bringing in new products.

“The allocation of an additional $50 million to our buyback plan is a result of our solid liquidity position and Nexo’s ability and readiness to spur on its own products, token, and community, alongside its outward-facing initiatives of injecting liquidity into the industry.”

Stablility Amid Market Challenges

The cofounder added that the Nexo token was moving consistently along with Bitcoin and Ethereum amid tough market conditions. He said it demonstrated that proportionally, demand for the company’s native asset remained strong. The third Nexo buyback ensures added stability as the community emerged from the market rollercoaster, he added. “Right now, our investors and clients require solid ground to walk on,” Trenchev said, indicating that support is needed until the bull market is back. The company claims to be managing assets for over 5 million users currently across 200 jurisdictions.

Meanwhile, the buyback announcement pushed Nexo price to the $1.03 level. However, the token price took a correction thereafter. As of writing, Nexo price stands at $1.00, up 3.04% in the last 24 hours, according to price tracking website CoinMarketCap. The token saw a recent high of $1.05 earlier last week.