Token Redenomination - Crypto Academy / S4W3 - Homework Post for @wahyunahrul

Token redenomination is referred to to the reproduction of a particular cryptocurrency by its development team with the purpose of making the coin rate/price cheaper so even small investors will also be able to invest in tokens.

After the Token redenomination price of the token goes down as the supply of the token increases in the market than demand. But this makes an entry point for all the small investors and traders.

Distinguishes Token Redenomination from currency or other assets redenominations

The main difference between Token Redenomination and currency redenominations is that their purpose. Token Redenomination is the process of reproduction of particular cryptocurrencies as their price is so high and because of high prices, small investors are not able to trade in that asset. Token Redenomination makes the way of investment for the investor/trader.

On the other hand currency, redenominations are conducted when the currency value is decreased because of inflation. The best example you will see is in Iran as they changed their rial with toman due to high inflation. It helps to stabilize the economy and solved the calculation problem.

Advantages

• One of the main advantages is as a token redenomination will attract and reach more peoples As its value goes down. Small traders/investors will be able to invest a small amount of money in tokens.

• Token Redenomination shows that the project has a good amount of demand in the market and people like that project.

• Token Redenomination also helps to increase the trading transactions as it will attract more investors for the token.

Disadvantages

• The main disadvantage of the Token Redenomination is the user needs to convert their old token with new. It has time to complete but it will spend user time and expenses.

• Token Redenomination is not known by every investor so it results that some investors will be scared of price drop and will withdraw all of their investment from that coin.

As per my opinion, every cryptocurrency project should apply the Token Redenomination as it enables everyone to invest in certain cryptocurrencies even in small amounts investor will be able to invest in cryptocurrency. This will help us to promote the cryptocurrency

I saw on the internet about the token redenomination and I found SUN token and PUNDIX. As earlier I make trade-in NPXS coins in my early days of trading So because of that I choose the PUNDIX for the research.

Firstly you need to visit https://www.pundix.com/ and on the home page, you will get the alert box just like given below.

After clicking on the swap button it will redirect to the below screen. After that click on the wallet option, I got the modal for the login and I used my trust wallet account to login into the PUNDIX.

As you see in the below screenshot 1 NPXS = 1 PUNDIX. Currently, I don't have an NPXS coin if it's available in the wallet it will swap using the below screen. This token swap will run till the next year that is 29th March 2022 and after that NPXS will stop operating from the crypto market.

The PUNDIX rank is 235 on the crypto market and its current price is $ 1.27 and it has a market cap of $327,747,253

This is the graph and in the graph, I observed that the current price of PUNDIX is so much attractive. As its price was since last year very low.

Not only the price levels of the PUNDIX was attracted they also offer various types of pos machines for the Kirana stores and small shops which help them to accept the payment in cryptocurrency. It was a very good initiative and I hope this company will grow in the future as every payment will be integrated with crypto in the future. So it's better to invest in this token and will enjoy more profits in the future.