Hello everyone. I’m very pleased to start submitting my posts for the steemit crypto academy beginner courses. Participating in this homework tasks has really broaden my knowledge about the crypto world. Today I’m to submit my post on Token Redenomination thought by professor @wahyunahrul.
Question 1
The term Token redenomination is the readjusting of a cryptocurrency token with a major point of expanding the number of token accessible, expanding the number of traders, expanding its market liquidity and progressing the general environment of the project. Redenomination is normally done due to currency devaluation. When redenomination occurs old currencies are taken out of the system and new currencies are issued. Also when it occurs, new value is established for the new currencies.
In other words redenomination can be explained as a form of change made to create the nominal value of money less complex, in brief, making amendments to the money without changing the value of the money. The similarity is just like the past price of one currency was 5000 with a selling value of 5000 , and after being redenominated the currency became 5 with a settled selling value of 5000.
Let’s consider an example. The most popular redenomination project took place in Zimbabwe. Zimbabwe redenominated its currency at a rate of 1,000 old Zimbabwean dollar to new Zimbabwean dollar in 2006.
When it comes to cryptocurrencies, redenomination is done to changing the zero(0) digit to to any figure for example, 100:1 , and update that crypto asset with the aim that after the redenomination it will make traders of all classes to invest in the token. The main reasons for redenomination in the world is, adoption of new currency, crises, inflation and decimalization. Within the cryptocurrency world, redenomination plays a vital role by increasing the market liquidity, attracting new traders, developing the environment of the project. A few of the foremost cryptocurrency redenomination are Polkadot redenomination, the Sun redenomination and the BTCST redenomination.
Question 2
• Token Redenomination can donate the impression that the project on which the redenomination is done is effective and that the project will prosper. With redenomination, unused augmentations can be made to the project and the scope of the project will develop as well.
• Redenomination leads to an increment within the market cap and can attract more traders interest within the project and securing of the token which at that point eventually leads to an increment within the market cap.
• With Redonomition, the cost of the token will diminish. This increments the probability that the token will reach more individuals. Particularly small traders can possess these tokens by paying a smaller amount rather than contributing huge sums in this token.
• Due to the ignorance of people about redenomination, traders may got frightened due to the lack of knowledge about redenomination and that can cause them to withdraw all their funds they invested.
• After redenomination, traders have to change the tokens they possess from the old currency to the new one. By doing so, fees are charged to complete this process and this will put the trader in spending unnecessary.
Question 3
Redenomination is done so as to extend the number of tokens whereas still maintaining its esteem. This is often required to welcome more traders. So I don’t think all cryptocurremcies need redenomination. However, as time goes on a cryptocurrency project may need a redenomination or not.
for instance, a token that needs to decrease the nominal amount of its market capitalization so that the numbers turn out to be more brief and additionally, need to update the token network. For crypto assets that are stable and don't have specialized issues that require them to undergo redenomination of its tokens, redenomination is not necessary for them.
Question 4
In this question, i will be talking about the Pundix token redenomination that took place in Singapore. The initial name for this token was NPXS, which was changed to Pundix after going through redenomination. The organization(NPXS) made an announcement about the token redenomination in March, 2021 and all the associated parties agreed to this information after discussing with the organization. It was said that the Pundix will soon be recognized in the system as the new name for the NPXS token.
Traders with the NPXS tokens can change their old tokens for the new token Pundix with a rate of getting 1 Pundix for 1000 NPXS tokens. But the value of the token still remains the same.
Now let’s see how one can change old tokens to new tokens (changing NPXS for Pundix);
• First of all visit the official site using the link (https://pundix.com/)
• Click on the swap now at the top of the homepage.
• Now after clicking on the swap now button it will redirect you to swap.pundix.com (https://swap.pundix.com/#/). You then click on walletconnect at the right hand side of your screen.
• Now you connect the wallet you have and after connecting, you can now change the NPXS tokens in your wallet to Pundix. As i mentioned earlier 1000 NPXS is equivalent to 1 Pundix but the value is the same.
Question 5
Initially known as NPXS and now Pundix. It is a redenominated token that uses blockchain technology to function under the cryptocurrency world. Pundix is not well known unlike Bitcoin and Ethereum in many exchange platforms but i think as time goes on it will gain its standard and also be like the top rated cryptocurremcies. The reason of this token is to coordinate cryptocurrencies into our daily lives. And this can create pos gadgets that acknowledge payments as Pundix.
The Pundix token is a redenominated token that has a lot of advantages and i this it will be nice investing in it. Below are some facts about the Pundix token from coinmarketcap site;
From the above screenshot, we can see that Pundix has a current price of $1.256 as at the time of doing this assignment.
The Pundix token is gradually getting exposure as it has been ranked 234 place on coinmarketcap among all the cryptocurremcies involved. It also has a market cap of 324.722m and a maximum supply of 258.527m.
With all that i have explained I think the Pundix token is worthy investing in. It is a token that many traders can reach up to with small capital and a token is valued at $1.256. It does not require a large capital to invest in which makes it a worthy token to invest in.
The concept of redenomination is very good since it has an influence in token development. Although it has its disadvantages yet still the merits over powered them. It has been a good lecture and my best regards goes to professor @wahyunahrul for giving us this educative lecture. Hoping to see more of this good work from you.
Thank you!