Privacy-focused Swiss tech startup Nym Technologies has announced a $1 million NYM token buyback. The move aims to strengthen the company’s financial reserves and increase its market value by shrinking the token supply. Immediately following the announcement, the price of the NYM token increased by 47%.
Strategic Growth Step
Nym CEO Harry Halpin stated that the buyback is not just a financial strategy, but also an important step towards the company’s future growth goals. The move aims to reduce the company’s token supply and support its market value. NYM tokens are used for a variety of functions, including rewarding the network’s node operators, staking, participating in governance, and participating in “proof-of-mixing” mechanisms that ensure the network’s privacy.
NymVPN to Launch in December
The buyback announcement comes ahead of the company’s planned December launch of its privacy-focused VPN service, NymVPN. NymVPN will operate through a decentralized “relay” network run by community members. Users will be rewarded with NYM tokens for participating in this network, which will protect their web traffic and hide their online activity. The network is also expected to feature a structure that will allow users to remain anonymous thanks to its “Noise Generating Mixnet” technology.
According to Nym, network operators will be rewarded with NYM tokens for their services in anonymizing user traffic. Revenues from NymVPN subscriptions will be associated with the revenue generated from VPN usage by converting user payments into NYM tokens. Thanks to this system, each new subscription will create more NYM token demand, providing a completely anonymous VPN experience.
Constant Recalls May Begin With NymVPN
This buyback by Nym Technologies is also considered the beginning of a “continuous NYM buyback” process that could continue in parallel with NymVPN’s growth. CEO Harry Halpin stated that the purpose of the NYM tokens to be released is to contribute to the strengthening of the decentralized server network that forms the NymVPN infrastructure. Halpin also stated that the buyback funds will not only reward network operators, but will also be used in marketing and technological development.
