INTRODUCTION
Hello, everyone and profs am actually very excited to partake in this week cryptoacademy homework as my first and I hope to abide to rules and do my best.
The lecture is about token redenomination which is very interesting, it is about how a particular body will want to substitute a currency from the old one to the nee one with the same value and one of the reason this may occur in an economy can be due to devaluation.
ENTIRE QUESTIONS
1). Explain what is Token Redenomination in your personal opinion? What distinguishes it from currency or other assets redenominations?
2). Mention the advantages and disadvantages of Token Redenomination
3). Do all cryptocurrency projects need to do Token Redenomination? Explain in your personal opinion
4). Choose a project that has or is currently doing Token Redenomination and show how to convert old tokens into new tokens. (Screenshot Required)
5). Analyze whether the token from the project you chose in question number 4 is worth investing in. (Screenshot Required)
6). Conclusion.
Explain what is Token Redenomination in your personal opinion? What distinguishes it from currency or other assets redenominations?
When you talk about token redenomination, the first thing that comes to the mind is inflation because in the economy it is the main reason why we have token redenomination.
Token redenomination simply mean a way in which a body or an organization that is in control of a particular currency observe that the currency is loosing it value so the do this to control and manage the currency.
We can also say that it is a change that occurred in a currency from the previous one to the current one without the currency loosing it value in the process.
It plays alot of part in the market because when a currency experience redenomination it will leave the market open to the small investors that way not able to enter the market finally venture into the market and invest and in the process the market will experience alarge turn over of investors and investment which will thereby boost the liquidity of the market thereby increasing the rate in which asset are being traded.
One of The main reason behind this is inflation in the economy and devaluation of currency.
What distinguishes it from currency or other assets redenominations?
When it comes to token redenomination it has to do with substituting an old token to new token maintaining value and costless which will encourage more investors and investment, the market economy will be boosted because the will be more people and buying and selling will increase.
When it comes to other assets the redenimination it will cost high and which will thereby reduce the way people invest in the market and the market will now be less attractive.
Mention the advantages and disadvantages of Token Redenomination.
Advantages
market boosting
The token redenomination plays a great role in boosting the market economy because when the market is possible for alot of investors to invest in it you will notice that the will be enough buying and selling of assets which will boost the market.Benefits small investor
It will benefit small investors because the cost of assets on the market will be less thereby opening doors for more small investors to come in and start investment in the market.Token progress
With token redenomination the controller of the project will know how the token is making progress in the market.Ecosystem growth
It will help in growing the token ecosystem because once it occur the will be large people that will be investing in the token which will thereby boost the token ecosystem.
Disadvantages
lost of funds
Once there is token redenomination, scammers will one to capitalize on this by creating oymther application that may perform tthe same function but not the original application and if a trader or investors fall victim of this fake site he or she will be scamm and all his fund will be lost.Difficulty in adaptation
Whenever something new comes up it is not always easy for people to adapt to it or probably have knowledge about so the idea of token redenomination may probably and will be difficult for trader to adapt to it.Lack of knowledge about changes
When ever it comes up the may be slight change which the traders or investors may not know making it hard for themFear
The traders or investors will always be scared of what the do not know or have knowledge about.and may not want to invest with the fear that it may be other scam.
Do all cryptocurrency projects need to do Token Redenomination? Explain in your personal opinion
No, with the following reasons
Token redenomination is done when the currency is loosing value and as such when everything including the value of the currency is appropriate the will be no need.
Token redenomination is done when there is inflation and by this when there is no inflation in the economy it will make no sense for token redenomination.
Token redenomination is also use to check how the token ecosystem is growing and if it is in a positive state there is no need.
To my opinion I feel there is no need for token redenomimation.
Choose a project that has or is currently doing Token Redenomination and show how to convert old tokens into new tokens. (Screenshot Required)
NPXS is one of the old token that experience token redenomination to PUNDIX
Step in which it will be converted to it new tokens.
Before you can convert any token from a old token to a new one you must first enter the site and as such I will first enter the website.site
Source
When the site open you can also become xpos distribution but I will be using the swap now since I want to swap to new token.
In the screenshot below once you click on the swap now,you are going to see a page where you can either download the fx wallet or connect any wallet you want and continue the swapping process, and I will press the wallet connect.
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After clicking on connectwallet the next page that will display will ask if it is mobile dvice or you want to perform a code scan after that you click on connect .screenshot below
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After you might have click on the connect and select mobile device, it will take you directly to trust wallet, here your approval will be seek before proceeding, if you agree you click on connect.
[Screenshot from trust wallet]
After you approve tou will be taken to your wallet where you will see the address and what you are connected to.
[Screenshot from my trust wallet]
Once you see this, you will not have to disconnect your trust wallet but rather you will have to save and leave.
After I save and leave I went back to the previous page here, I observed changes
There code from my trust wallet appear to continue the swapping
I saw a space to swap from the old token NPXS to PUnDIX.
I was not able to continue due to the fact that I was explaining and did not actually have the old token to swap.
Analyze whether the token from the project you chose in question number 4 is worth investing in. (Screenshot Required)
PUNDIX is a very important and lovely project for investors to invest. With this token you can make payments for shopping in any part of the globe using digital currency.
It also have potential of rising which will be of great benefit to trader because it will help them in the maximization of profit.
Below is the screenshot from coinmarket to see how the coin is as of today which I published the assignment.
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| Pundix | characteristics |
|---|---|
| Price | $1.27 |
| Market cap | $327,201,092 |
| Circulating supply | 258,491,637.23pundix |
| Volume | 0.07842 |
| Rank | 235 |
From the PUNDIX chart you will be seeing the the token is currently doing well in the past few days.
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CONCLUSION
Today being my first class, I learned so many things ranging from what is token redenomination which I now know that it has to do with changing of currency from old once to new once for example in the case of NPXS that was changed to pundix but the value will still be the same.
I also know that it is not all cryptocurrency job that need token redenomination because once the token is stable there is no need for it.
I enjoy the step use in changing the NPXS to PUNDIX.
Thank you very much prof @wahyunahrul I really enjoyed my first lecture