Token Redenomination – Crypto Academy/ S4W3- Homework post for @wahyunahrul

jueco (76)Beginner[2,3,4,5,7]in SteemitCryptoAcademy • 3 years ago (edited)

Hello guys, I happily welcome you to the third week of Season4 of the steemit crypto academy.

This week, we are privileged to be lectured by Prof @wahyunahrul as his lecture has withstood the test of time and have proven to be awe-inspiring.

On his last lecture, we learnt a lot on socios.com which happened to be a connection between cryptocurrency and sports.

This week, we shall be learning a different interesting topic, which centers on the Redenomination of tokens, we shall also learn how to convert an old token to a new one.

Without any further ado, shall we progress as we attempt the first task.

EXPLAIN WHAT IS TOKEN REDENOMINATION IN YOUR PERSONAL OPINION? WHAT DISTINGUISHES IT FROM CURRENCY OF OTHER ASSETS REDENOMINATION

Before examining what token redenomination is, permit me to shed a little light on what tokens are.

Tokens are tradable and fungible assets that do not posses a blockchain of their own, they are built on the blockchain of other cryptocurrency.

Tokens are used as a medium of investment, they are also used to transfer funds and they help in fundraising inorder to assist a project.

Also important to note is the fact that tokens are developed, shared and spread throughout the globe through the process known as INITIAL COUN OFFERING [ICO].

Redenomination on the other hand is the process of changing an old currency to a new one and there are lot of factors behind redenomination.

Token redenomination can be explained as the process in which a token is recalibrated.

There is a difference between the redenomination of currency and revaluation.

Revaluation of a currency is the change in value of such a currency while redenomination is the change in facial expressions/value of a currency.

Now the difference between the redenomination of a token and that of other currency will be highlighted below.

TOKENS	OTHER CURRENCY
It's redenomination is done digitally	It is done manually as it requires creation of new currency notes
It's process of exchange is easy and fast	It's process of exchange is time-consuming
Swapping is done through an exchange	Swapping is done in the bank
It's exchange does not require movements from one place to another	it's swapping requires movement to the bank.

Having discussed this, shall we proceed to the next task of the adventure

MENTION THE ADVANTAGE AND DISADVANTAGES OF TOKEN REDENOMINATION

As the popular saying goes that there's nothing with an advantage without a disadvantage.
This is true in the case of token redenomination and below are it's disadvantages and advantages respectively;

DISADVANTAGES OF TOKEN REDENOMINATION

FRAUDULENT ACTIVITY:
Cryptocurrency fraudsters see token redenomination as an opportunity to scam many investors, as they can do this under the disguise of exchanging to new currencies.
SLIPPAGE: An investor risks facing a negative slippage in terms of conversation of tokens
ADAPTABILITY: Although adaptability is one of the characteristics of humans, we must learn to adapt.
In this case, investors may lose funds in the period of adaptation, as they are not yet familiar with the operation of the new token.
TRANSACTION LEVI:
Definitely, to swap from the old token to the new one will cost some money.
In some cases, it costs a lot of money and otherwise in some, but it still cost money to swap.

ADVANTAGES OF TOKEN REDENOMINATION

Below are the advantages of token redenomination
PRICE ESCALATION:
Token redenomination assist in the escalation of prices of a token.
At first, it decrease in price will attract a lot of small scale investors and this in turn will lead to the escalation of it's price.
ASSISTANCE TO INVESTORS:
Token redenomination provides assistance to small scale inveators in the sense that it gives them the opportunity to be a shareholder of such token at a cheaper rate.
Token redenomination helps to improve the liquidity of a token. What I mean is that the more trader on such a token the more it's liquidity rate.
It also assist in the increment of the circulating supply of a token. Redenomination attracts investors, so in a sense, it circulation increases.
The last advantage I'll mention is that, in compilation of all the advantages I've mentioned, there's no doubt that token redenomination helps in the growth and development of a token's project.

Without any confusion, shall we proceed to the next stage of this adventure

DO ALL CRYPTOCURRENCY PROJECT NEED TO DO TOKEN REDENOMINATION? EXPLAIN YOUR PERSONAL OPINION

From my personal view, I don't think all cryptocurrency project need redenomination.

I said so because there are lots of challenges attached to the redenomination of a token.

Yes, redenomination is not bad in itself but it shouldn't be done by all cryptocurrency because;

If all cryptocurrency undergo redenomination, it will result in the apathy of big time investors as the value of their assests will depreciate heavily, and this can lead to chaos of the cryptocurrency market as a whole and if not immediately attended to, it can lead to the banishment of cryptocurrency by some countries.

Another reason I said so is that, redenomination gives fraudulent programmers the opportunity to rob investors off their money. Disguising to assist in the conversion of assets.

Please with all humility of heart, I ask for permission to proceed to the next stage of this adventure

CHOOSE A PROJECT THAT HAS OR IS CURRENTLY DOING TOKEN REDENOMINATION AND SHOW HOW TO CONVERT OLD TOKENS INTO NEW TOKENS

After making research, I discovered that there are a few tokens that have undergone redenomination and they are : Sun token, Deep, Btcst, Npxs and many more. And I have decided to pick sun Token.

Sun token being a token that helps in the progress of decentralized finance is built on Tron blockchain network.

The mining of sun token began on September 2020 and lasted for almost 2weeks before it was launched.

Sun token found by Justin sun is aimed at providing assistance to Tron protocol which helps in the creation of a Decentralized ecosystem.

Now shall we proceed to the tutorials on how to convert old tokens to new ones.

To do this, I had to visit my playstore inorder to get the tronlink app downloaded as I initially did not have it on my phone.

^{SCREENSHOT FROM PLAYSTORE}