Crypto lending platform Nexo allocated another $50 million to the company’s buyback initiative on Tuesday. The company’s long-running venture last saw the $100 infusion in May this year. The latest confirmation allows the company to “voluntarily and periodically buy back its native Nexo token” on the market. Meanwhile, the buyback announcement led to a surge in altcoin price. However, he then made a slight correction.
Nexo buyback allocation
The company said the new allocation of funds to the buyback program comes at a time when it maintains a solid liquidity position. The lending platform said it is working to launch incentive initiatives to inject liquidity into the crypto ecosystem. Antoni Trenchev, co-founder and managing partner of Nexo, shared his views on the subject. In this context, he noted that the company is ready to introduce new products. In this context, Trenchev made the following statement:
The additional $50 million allocation to our buyback plan is a result of our solid liquidity position and Nexo’s ability and readiness to promote its own products, tokens and community, alongside outward attempts to inject liquidity into the industry.
Altcoin price soars amid market challenges
The co-founder added that Nexo has been acting consistently with Bitcoin and Ethereum in the challenging market. Proportionately, he said, it shows that demand for the company’s local presence remains strong. The third Nexo buyback provides additional stability as the community exits the market roller coaster, he added.
Antoni Trenchev stated that support is needed until the bull market returns. “Right now, our investors and customers need solid ground to walk on,” Trenchev said. The company claims that it currently manages the assets of more than 5 million users in 200 jurisdictions.
Meanwhile, the buyback announcement pushed Nexo price to $1.03. However, the token price later saw a correction. NEXO is trading at $1.02, up 4.90% in the last 24 hours, according to price monitoring website CoinMarketCap. The altcoin saw a recent high of $1.05 early last week. NEXO ranks 68th in terms of market cap. The altcoin rose to an all-time high at $4.63 about 9 months ago. At its current price, NEXO stands 78% off its peak.
