Skip to content
English
Contact
Home
  • There are no suggestions because the search field is empty.

Pulling Back Tokens From an Investor

This article explains the procedure for an issuer to use to pull tokens back from an investor. It includes a discussion of potential reasons why an issuer might pull tokens from an investor, as well as a step-by-step walkthrough of how to do so.

In This Article

  • When to Pull Tokens Back From an Investor
  • How to Pull Tokens Back From an Investor
  • Pulling Back Tokens - Video Demo

When to Pull Tokens Back From an Investor

As an issuer, you technically have the ability to pull tokens back from any investor who holds them in a self-custodied wallet at any time. This action takes place unilaterally and cannot be un-done. This is a very powerful feature, and must be used judiciously in order to maintain the trust of investors in your marketplace. 

Scenarios in which you may wish to pull back tokens from an investor include:

  • Your tokenization use-case includes token redemption at the end of a defined period of time or when certain business criteria are met.
  • An investor has had a cybersecurity incident and requests that you as the issuer take custody of their tokens on a temporary basis.
  • An investor has engaged in fraudulent activity or has become ineligible for an investment in your Asset.

An action to pull tokens back will execute a transaction on the Polymesh blockchain network to transfer the tokens from the owner's wallet back to the asset's treasury wallet. 

Note: An issuer can only use the pull back tokens feature to return tokens from a self-custodied owner's wallet. In the case of an issuer-custodied owner, the equivalent process is to simply amend their token ownership amount on the Owners Management page. 

How to Pull Tokens Back From an Investor

  1. Login to your issuer account and enter your Marketplace.
  2. From the Marketplace dashboard, click Companies and enter your Company.
  3. From your Company dashboard, click  Owners managements   to launch the cap table management tool for your Asset.
    1. If you have more than one Asset listed under the same company, you will need to use the drop-down menu on the Owners managements page to select the correct asset. 
  4. From the owners management tool, find the owner/shareholder you wish to pull tokens back from, then click the three-dot icon on the right side of their row, then click Pull assets back.
  5. From the Pull assets back menu, enter the number of tokens you wish to pull back from the investor, then click Pull assets back and click Confirm on the pop-up window.

Note: Pulling tokens back from an investor will cause the immediate cancellation of any secondary trade listings the investor may have had open for that asset. 

Pulling Tokens Back - Video Demo

This video provides a walkthrough of the process of pulling tokens back from an investor and a brief discussion of possible scenarios in which an issuer might need to use this feature: