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

Hello everyone, I welcome you again to my blog and as well a warm welcoming to you to Crypto Academy, it's with honour I will be discussing with you today on Token Redenomination. Thanks to prof @wahyunahrul, for his amazing lecture, which shed more light on the course. On the write-up today, I will be discussing with you on the topic in the following task order;

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 5 is worth investing in. (Screenshot Required)

So right into it, my explanation goes as follows

Question 1 - Explain what is Token Redenomination in your personal opinion? What distinguishes it from currency or other assets redenominations.

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Firstly, before diving into the topic "Token Redenomination", I am going split the two words, "Token" and "Redenomination" . so what does Token means

Token : Tokens are currency used in the crypto system to addresses a resource or to act as any other form of cuptocurrency exchange and are created seperately on their own specific blockchain.

While

Redenomination is a word addressed to as when changing the known worth of a currency or coins available for use. In a way that, the worth and name of the currency might be changed or the first name might be used with a short qualifier.

So with this definition i hope its not longer difficult to know what Token redomination is , Has in my personal opinion i define "Token Redomination"" as a process in which a particular token will go through relocation from its original blockchain and migrate to a newer blockchain, during this process the particular tokens that undergone redenomination might have changed of price worth or changed of name and simultaneously a change in symbol as well.

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What distinguishes Token redenomination from currency or other assets redenominations

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I will be showing the differences between token redenomination and currency or other assets redenomination in tabular format.

Token Redenomination	Currency or other asset Redenomination.
Token Redonimation undergoes migration on blockchain	currency redonimation undergoes migration on the same platform just a changed in name .
Old Tokens are been replaced with new tokens entirely at a different price values	Old Currencies are only been replaced with new notes and are traded for new ones at a different value.

Question 2 - Mention the advantages and disadvantages of Token Redenomination.

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Advantages of Token Redenomination

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¶Token Supply Reduction : This should be one of the greatest benefits of token redenomination has it occurs that Redenomination are mostly initiated when there ought to be an increase in worth of a Token, so this is mostly achieved by reducing the Token supply which made it greatly scarce unlike before, and there ought to be much more demand for the coin than the supply, so this process benefits Token Redenomination a lot.

¶Increase in worth : Just as been said earlier, that whenever there's Token Redenomination there's mostly likely to be an increase in worth of the particular Token that was been redenominated, in other to achieve the balancing of the circulating supply of the Token with customers demand.

¶Brings More Investors : Likely, people love to invest in newly launch or redenominated tokens as they believe its more promising to give a boom! In the nearest future, so relaunching a token makes it new, its just like you are launching a new Token entirely especially to those who didn't participate in the previous Token before, so Redenomination brings more investors to the platform and this is more profits to the owners as the more people come to invest, the more the rewards get and causes booming to the particular Token.

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DisAdvantages of Token Redenomination

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Thou it's nothing new that whatever has a good side also have a negative side, no matter how perfect it could be, so Token Redenomination also has some bad effect mostly to the previous Token holders and to the company as well.

¶Risk Loosing Customers : The whole point of Token Redenomination can not surely work with every one, has its more risky especially to companies that haven't guarantee much user yet, this whole system set them at the edge of loosing future customers as those who have invested in the token might not tolerate the idea of its Redenomination and might just as well want to fall out of the investment and look for other turn up tokens to invest on.

¶Succes is not guaranteed: You know everything on blockchain system is risk, as the Succes rate of having more investors after setting a higher price for the particular Token might not be surely guarantee, it's just too risky after putting all the effort and time to implement a project,this should be a major disadvantage of Redenomination as it doesn't guarantee much that the project Success might come as expected, which thus case might led to closure of the particular Token as its certainty is unknown of yet.

Question 3 - Do all cryptocurrency projects need to do Token Redenomination? Explain in your personal opinion

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Firstly, Just have explained earlier, the Succes rate of Redenomination is not promising despite that it posses lots of good features and massive profit to the company,infact the Succes rate is even more narrow to new cryptocurrency project has they are not been known of yet and they intend on moving to a new blockchain, the idea of doing this might just look more like a joke to there consumers.

Secondly, people like to do more of what they are already familiar with, in a sense that moving a cryptocurrency to a new blockchain might seem kind of odd to the consumers, especially those who only loves to hold, this might seem as too much of risk to them, as they are not sure of the Succes of the project you are relaunching.

So in my personal opinion Redenomination of a currency is more of 30% Succes and 70% failure , majorly to new crypto currencies project.

Question 4 - Choose a project that has or is currently doing Token Redenomination and show how to convert old tokens into new tokens. (Screenshot Required)

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I as well, will be making research on SUN Token, just as discussed by the professor, that the token made it Redenomination announcement on June 4, 2021 then referred there previous token as SUNOLD, with change of name and logo as well. The company intend on maintaining there current market cap and introduced a 1:1000 of the Redenomination of swapping the old toke (Sun Old) to a new token (SUN). The SUN Token run on Tron Blockchain.

In other to swap the old token to new one let's have it in mind that The SUNOLD contract address is TKkeiboTkxXKJpbmVFbv4a8ov5rAfRDMf9

While the new SUN contract address is

TSSMHYeV2uE9qYH95DqyoCuNCzEL1NvU3S

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Now, I will be showing Step by Step Guide on how to succefully swap the Old Sun Token to the new SUN Token using JustSwap from the Tronlink wallet app.

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• Step 5

This page now brings you to the swap page, where you are to select the amount of Token you are willing to swap.

As shown in the image above, you can see swapping the old sun Token to new is In ratio of 1:1000, as I tried making a swap of 1.2 Sun Old token makes equivalent to 1200 of the new sun Token .

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NB : when I tried making swap of trx to tron, I successfully made transaction of 15 Sun with 5 trx, I made the mistake thinking it was the old token, due to insufficient of trx as I made research that 1 sun old Token makes equivalent to 324trx, which I don't quite have up to that, so with this I would made a stop has have shown the details and how to swap from sunold Token to new sun token.

Question 5 - Analyze whether the token from the project you chose in question number 4 is worth investing in. (Screenshot Required)

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Prior to the token I chooses in question 4 which is the SUN token, here on is the analysis of the token ;

SUN token is currently rank 313 on the market list, this already shown that its more of a good investment, because having a token getting to that ranking level shows the seriousness behind the Sun project and as well it was reveled that the SUN token actually took the name after the founder of tron himself "Justin SUN" which this brings lot of eye sore to investors as the project promise a good feautures since its primary intention is to exist as help for the TRON assembly, which intends to make a decentralized web biological system.

SUN explicitly centers around Defi and supporting its take-up and penetration on TRON's blockchain. Thusly, its capacity copies that of the local badge of Defi stages, and rewards clients for marking different coins and including themselves in administration strategies.

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Sun current market analysis is shown in the image below

^{image Screenshot from Coingecko}

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SUN token price chart in the last 2 days is as shown below

^{image Screenshot from Coingecko}

With this price value chart of the token, it's no longer confusing that the coin keeps on rising to its value time to time, it might not be a huge uptrend but its still worth investing despite its ability to maintaining steady price for some period of time, so contrary to my explanations I think investing in the SUN token will be a huge Succes and it's better to invest earlier on this particular project as early as it's more promising to large uptrend in the future

Conclusion

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Token Redenomination is a process or a system in which a token undergo migration from its original blockchain to another blockchain, and with Redenomination promise a good feautures to the company as there get to be a change in value of the token. Redenomination comes with side effect as a successful Redenomination is not certain yet, yet Redenomination might also turn a huge profit or loss to the company as consumers might be ready to invest more or there might be a circumstance where investors are not satisfied with the decision and might as well want to fall out of the investment and find other project to invest on.

Thank you for taking your time on my post, I hope I get to see you In the nearest!!

Cc:

@wahyunahrul