Token Redemption
Token redemption is the process of exchanging a token for the value, asset or financial claim it is designed to represent, subject to the rules of the product. Depending on the structure, redemption might result in cash, another asset or the settlement of an investment interest.
Why it matters to you
Buying a token is only one side of the investment. Investors should also understand how they get their money or underlying value back, whether redemption is available directly, what conditions apply and how long the process may take. Redemption and selling on a secondary market are not necessarily the same thing.
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