The Nexo platform is a lending platform that gives you passive income for leaving your assets in your wallet. If you want to earn higher you need to lock up your asset and not access it, and you also earn higher when you choose to receive your interest in the platforms native token called NEXO. Well Nexo was not exempted from the bull run as the native token had a good run. The price got to $4 in May, crashed during the May Price crash and its almost back to its previous all time high with its current price above $3.
I loved using NEXO wallet because of the thrill of getting notifications about your interest getting into you account every day, but I can’t help but recognize the risk. It’s totally and fully centralized and that’s a little scary because the security of your funds is totally dependent on the people behind the NEXO company. While I enjoyed their services while using them, I can’t help but be scared about the centralized nature of the platform.
The token is something that has also caught my interest, although I didn’t have any nudge to research about it, the only thing I pretty knew about the token was that, it’s the native coin for the NEXO lending platform. But seeing this news about the company going into a token buy back program just sparked my interest in wanting to invest in the token.
The lending platform’s board of directors just approved a $100 million buy back program that is expected to last for 6 months. This means that the company will spend $100 million to buy the Nexo Token from the open market. This will be done periodically, I guess it’s a way of adding more liquidity into the NEXO token and probably adding more value to the token. I don’t really know if the coin is deflationary though, or if there is a way to control the value by reducing the supply.
The company has done something similar earlier this year, but they did it with $12 million. This time they are going bigger and higher. Well my point in putting this information out here is that if you probably want to make a quick buck may be you should consider the NEXO token as the price might be expected to rise when this happens. There are probably lots of other investors that must have stacked up their bags because of the news waiting to watch the price sky rocket during the buy back.
These tokens when re bought is expected to be utilized into something that will promote the value and growth of the company like a merger. Not a financial advice but you can think about it.
Posted Using LeoFinance Beta
