Greetings:

Hi, this is me Hammad Aslam my user id is @hammadahmed112. today, I learn a new topic regarding token redenomination. this topic is given by prof.@wahyunahrul. so, let's get started:

Created on CANVA!

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

Introduction:

Now, here we will break this word which is Token Redenomination. after breaking this word we have a Word called "Token". first, try to understand this word. basically, the token is the currency but, it is based on Blockchain technology. this currency is run on the blockchain. the value of the blockchain is determined by the token the reason was that if the price of the token or the demand of the token is very high so, it indicates that this blockchain is a good project.

Token Redenomination:

As we all know that the crypto market having high volatility due to this high ratio of volatility we can not manage our crypto assets or token. because if we saw, the 24-hour chart pattern of any token sometimes it will be 32% up or down. the normal trader did not manage this because we are not online every time. we have another work to do. to avoid this inflation of our token a new terminology is introduced which is called
Token Redenomination


This new terminology is introduced by the owner of the token of that blockchain. In Token Redenomination the owner of the token eases the price of the token for a normal trader. this ease in price helps and avoid the inflation rate of the token and also increases the liquidity level.

Let's take an example so, it is understandable to all of us. suppose a token x reaches its maximum like $2. now, this price is very high for small investors. here is the role of liquidity level which I was mention above. The owner or organizer of that token can decrease the liquidity level of that token. due to this effect supply of that token increases and the price is going stable. but noticed that it depends on the liquidity level means how many tokens can liquidate from the owner or the organization of that token. if the liquidity is in a very low amount so, it does not impact at a bigger level. on the other hand, if the liquidity level is very high so, it creates a major impact of inflation.

In fiat currency the same concept is apply. as we all know that in fiat currency government plays an important role. sometimes a country faces a high inflation rate and poor or middle-class people didn't afford this inflation. so, here is the role of government is starts the government Redenominate its currency in the market. so, as a result, the middle class, or especially the poor can afford the commodities.

Mention the advantages and disadvantages of Token Redenomination

Now, here we will discuss the advantages and the disadvantages of Redenomination. let's begin:

Advantages of Redenomination:

1. The very first advantage of the token Redenomination is that it gives the opportunity of the small invertor or trader to continue takes its trade. it makes the trade affordable to every small trader or investor.

2. The Second advantage of the token Redenomination is that it provides liquidity levels both high and low. if the price of the token is high so, then the liquidity level is low and if the price of the token is low so, the token has a high liquidity level.

3. The third advantage is that the token Redenomination is also told us the success rate of that project. if the demand is higher it means the success rate is higher. and if the demand is lower so, it indicates a low success rate.

4. The fourth advantage is that the circulation supply. the higher the circulation supply indicates the lower liquidity levels. this phenomenon indicates the rate of transactions. if the rate is high means the demand for that token is increasing.

Disadvantages of Redenomination:

1. The very first disadvantage is everyone did not know about the Redenomination and its concepts they take or leave its trade on the basis of rumors. so, in their result, they did not earn a good profit.

2. The second disadvantage is sometimes the price of the token goes up. so, a newbie trader takes its trade at a higher price. now at that time, the term redenomination is introduced in the market and due to big change, the price goes down. As the result, a newbie trader faces a loss.

3. Gas fees issue sometimes it is very high.

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

no, absolutely not, because it has two reasons. the very first reason is by the passage of time the inflation rate is increased due to this increase in the inflation rate people faces hurdles in terms of buying and selling their commodities. so, if we want to defeat the inflation rate. we need to increase the price of tokens.


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


no, absolutely not, because it has two reasons. the very first reason is by the passage of time the inflation rate is increased due to this increase in the inflation rate people faces hurdles in terms of buying and selling their commodities. so, if we want to defeat the inflation rate. we need to increase the price of tokens.


the second reason is that in the market there are so, many tokens that are based on blockchain technology. if we Redenominate our token again and again it does good for the market. the new token didn't grow and due to this reason, people leaves the market.

Pick a project that has or is doing Token Renaming and show how to convert old tokens to new tokens. (Screenshot required)

Now, we discussed token redenomination practically, In this view, I select the PUNDI X Token. basically, this token is updated PUNDI X is the new name. the old token name is NPXS. this token name is updated a few months ago March 2021.


Now, we have to convert NPXS to PUNDI X. this is done in a few steps. let's go through it:

Step # 01:

Go to the official website of PUNDI X. you will see this type of interface.

Illustration of PUNDIX

Step # 02:

In the next step click on the SwapNOW button. after clicking it you will see the wallets option. let's connect it:

Illustration of PUNDIX

Step # 03:

Go through the first option the metamask wallet and connect it.

Illustration of PUNDIX

Step # 04:

Click on the Next button. and connect to it.

Illustration of PUNDIX

Step # 05:

I have zero PUNDIX. but I know the whole procedure and its gas fee. as we all know that this token is based on Ethereum Blockchain. so, it charges a little amount of fee if you want to swap NPXS to PUNDIX. if I have some NPXS it will show me the swap button after I was clicking it will swap.

Note that 1,000 NPXS = 1 PUNDIX token.

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

According to my point of view, PUNDIX having a great potential to goes up. the reason for that is as I previously discussed that this token is based on Etherum Blockchain. and the future of Etherum is very bright. because a lot of tokens, NFTS, and gaming token is developed on Ethereum Blockchain.


PUNDIX is a token that is growing rapidly, according to the data of coin market cap I was thinking it's growing up more and more in the upcoming days. because its rank is going up continuously, current it is #235.

Market Data:

Rank = 235
Current Price = $1.25
altime high = $3.564
Circulating Supply = 258,491,637.23 PUNDIX
Volume = $26,672,954
Fully Diluted Market Cap = $324,153,676
Market Cap = $324,070,293

All of this market data is taken from the coinmarketcap. you will go through it.

Chart:

You will also the chart of this token. I think is a great time to buy this token because it is a dip.

Illustration of PUNDIX

Conclusion:

In the end, I will conclude that the Redenomintaion is working great but there are also few disadvantages. redenomination is occur when the price of any token or fiat money goes up. means face inflation. In this article prof. @wahyunahrul gives all information about the redenomination. before reading this article I didn't understand what is redenomination and how its works. but now I have a strong grip on this redenomination concept.


I am very thankful and glad to our professor that's provides enough knowledge to all of us. also, PUNDIX is not a single token that can change its name. one more token Sun. which is created by Justin sun. it is also a token that can change its name.


so, that's it thanks to reading my article:

Regards:

@hammadahmed112

Note all the images are fully referenced by applying a watermark onit.

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