- Nym Technologies, a privacy business, plans to repurchase $1 million worth of NYM coins.
- The tokens will be used by the company to encourage participation in its upcoming NymVPN launch.
Nym Technologies, a privacy-focused Swiss company sponsored by Andreessen Horowitz, intends to buy back $1 million worth of tokens.
The goal of token buybacks, a fairly prevalent practice in cryptocurrency marketplaces, is to strengthen the firm’s treasury and restrict supply by having a corporation buy back its own tokens.
This buyback is about planning for growth, not just financial strategy.
There are currently 803 million NYM tokens in circulation (out of a total of 1 billion), and their current price is at $0.06 per token.
Over a 24-hour period, the token has increased by more than 7%. NYM currencies are utilized for governance, staking, node operator incentives, and proof-of-mixing consensus on the network.
The action is taken in advance of the mid-December release of the privacy-preserving NymVPN. The system makes use of a decentralized relay network that is managed by community members who are encouraged to sign up by the payment of NYM tokens. Additionally, it uses a “Noise-Generating Mixnet” to protect web traffic.
Each NymVPN customer payment is transformed into NYM tokens to separate the user’s payment from their app usage, and network operators receive NYM in exchange for their services in anonymizing user traffic. More NYM buy orders and completely anonymous VPN use result from each new membership.
Additionally, this initial repurchase will be a test run for an everlasting NYM buyback that will expand in tandem with NymVPN.
The launch of the NYM coin was solely intended to boot-strap the supply side of the decentralized server network upon which the NymVPN is based.
The money from the buyback will be used to develop Nym’s tech stack and support marketing initiatives in addition to rewarding network operators.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
