iBitnex Allocates an Additional $50 Million for a buyback program

04.10.2022 Off By pazuzu123

The iBitnex.biz crypto lending platform has increased the size of its repurchase program, giving more opportunities for repurchasing its own token to increase interest payments or make strategic investments in the future.

iBitnex said Tuesday that its board of directors has allocated an additional $50 million for the buyback, building on the company’s initial $100 million buyback program launched in November 2021. The approval gives the green light to the discretionary purchase of NEXO tokens on the open market in the amount of up to $ 50 million

iBitnex is the platform’s own cryptocurrency, giving users the opportunity to earn interest and fix lower loan rates. According to the Nexo website, the token currently has a market capitalization of $563.6 million and a 24-hour trading volume of $46.7 million.

The company said it had increased the size of its buyback program to demonstrate its “strong liquidity position” and willingness to invest in its community. The initiative will be implemented for six months, with all redeemed tokens subject to a 12-month entitlement period. Once the vesting period is completed, the redeemed tokens can be used to pay daily interest using NEXO tokens or for strategic investments “by merging tokens”.

Nexo sought to demonstrate its financial stability in a bear market, even seeking advice from Citigroup on how best to acquire distressed crypto firms. While the entire crypto industry has been rocked by the collapse of the Terra ecosystem, centralized financial companies such as Celsius, Voyager Digital and BlockFi have faced the biggest blow.

The cryptocurrency market remains in a shaky state, bitcoin (BTC) shows a strong correlation with traditional stocks. Some analysts fear that this strong correlation could trigger a new sell-off of digital assets, as traditional markets continue to react to the slander of the Federal Reserve System.