Leading cryptocurrency lending platform Nexo has just sent out its third dividend payment to token holders.
A total of $6,127,981.39 was distributed between eligible NEXO token holders, adding up to around $9.5 million in total between the three dividend payments by the company – following the first interim payment of $912,071 and last year’s distribution of $2,409,575.
As the terms of the security token state, the sum in question makes up 30% of the net profit made by the lending company, signifying impressive year-by-year growth.
Unsurprisingly, the token price saw a correction following the successful payment, as speculators had been accumulating the token in anticipation of the payout, with the clear intention to market sell immediately after that. The NEXO token price dropped 20% in the span of a little more than 24 hours after the event, dropping to $0.13 per token – almost half the price of July’s all-time high.
Even so, the token has outperformed both the US dollar and Ethereum since its initial launch, not even taking dividends into consideration – meaning that unlike some short-term speculators who got burned by the instant price correction, loyal long-term holders are probably more than happy with the outcome.
The massive dividend also served to dismantle some insolvency rumours surrounding the company, following its alleged connection to the Zeus Capital impersonators who sent spam emails spreading disinformation about Chainlink and urging crypto traders to short sell the token. As a reminder, the real Zeus Capital officially stated that the fund has nothing to do with the report, which itself has been debunked since.
Nexo has also denied the allegations, but their official statement failed to acknowledge their publicly visible Chainlink loans from Aave initiated right around the time the false report was spread out, adding fuel to the rumours that they are simply in damage control mode.
Given that Chainlink price surged following this drama, and practically all Chainlink short positions from that period have been liquidated, the perpetrators of the short and distort against LINK clearly lost massive amounts of money. And whatever happened to the Chainlink tokens that Nexo borrowed from Aave, their massive increase in net profits suggest that their business is doing better than ever, and insolvency appears out of the question.