Hi steemians,welcome to a new week of beginner's course. Am happy to participate on this week 3 beginner's course having met requirements. Thank you professor @wahyunahrul for the well explanatory lecture post, you really took time to break down your explanatory words to my understanding,indeed have learnt alot. Today i will be expressing my understanding of this topic through the homework task questions below.

homework task questions

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)

6). Conclusion.

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

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Generally, in an economic system, there is a strategy use by a currency dealers or controllers of a certain currency to tackle Inflation and currency devaluation which is the decline in the value of money or currency that strategy is called the redenomination.

Token redenomination is when a coins or cryptocurrency is reproduce by a certain coin developers/inventors due to the value of the coin ranging high, giving way to a downward change in the buying and selling power or liquidity of the token. by this, the reproduction of the coin will make the worth of the coin cheap making way for small investors to afford and also to participate in the investment.

When talking about the token redenomination in the crypto world,the main aim of this process is to create ways for investors who do not have sufficient capital,to be able to participate in the investment just like investors with sufficient capital.

What distinguishes it from currency or other assets redenominations.

In token redenomination,currencies or we say token, are redo or reproduce due to high price increase in the token which only give way to investors with enough capital to be able to buy the token. By this reproduction of the coin,it will make the coin less costly which will give the smaller investors opportunity to also invest on it.
WHILE
In other currencies or asset redenomination like the fiat currency,currencies are recalibrated or redo due to the inflation and currency devaluation which makes goods and services to cost high,and therefore giving way to a downward change in the buying and selling power of the currency. By this only people with sufficient funds can make buying and selling transaction.
With the redenomination process,controller of the currency(central bank) will redo or recalibrate the currency to tackle the the inflation and give way for a stable economy.

In a short note,what distinguished them is that in token redenomination currency are redo to help absorb insufficient capital investors while In fiat currency redenomination currency are redo to help solve inflation and give a stable economy.

2). Mention the advantages and disadvantages of Token Redenomination

Advantage of token redenomination

• Token redenomination triggers market transaction or buying and selling power by making token cheaper and much accessible for average investors. This will make investors rush to buy up the token which the think, that will be the cheapest rate the will ever be able to buy them which it might rise consistently in future.

• When token redenomination process takes place, large numbers of investors who were not able to invest due to insufficient capital will be able to invest. by this the platform will get funds to develop other sectors of the platform.

• lastly, it increases the quality of the token with the aim of increasing the supply of this token and reduces barriers that occur due to high price,by all this it helps with the growth of the ecosystem.

Disadvantages of Token Redenomination

• Sometime,when a token redenomination is conducted,it will lower the price per token by approximately 100 times compared to when it was without redenomination.

• when token redenomination is about taken place all activities related to that particular token or coin will pause,this will happen some hours before the redenomination take place.With this,any transaction,order or withdrawal during this period will authomatically be cancel till after redenomination.

• lastly, token redenomination is a new development when it come to cryptocurrency.with this investors are not really familiar with the process so it need proper planing and orientation to implement this redenomination. So it won't scare investors away with the thinking that the token is a scam.

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

Though this question is a bit complicated when looking at the benefits of this so call token redenomition.
But to my own opinion i don't think all cryptocurrency project needs token redenomination because there will be con when taken token redenomition in a well stable cryptocurrency project.
So i don't think crypto currency project with more investors,more liquidity with well stable token market cap and stable project ecosystem needs this token redenomition.

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

Source

Choosing SOMN project i will simply show how to convert SNM V1 to SNM V2 token

Step1

Visit the website swap.sonm on your browser.

Step2

To swap from SNM V1 to SNM V2 token,firstly you need to connect your wallet to the official SONM website. By this, scroll down to where you can locate, SNM V1 to SNM V2 token swap, then click on connect to wallet has you can see below.

step3

After clicking on connect to wallet the page below will open,you will now click on 'walletconnet'.

Immediately the page below,will open then you proceed by clicking on connect

step4

After clicking on connect a page will pop up requesting you to approve the wallet connection,you then proceed by clicking approveto approve your connection.

step5

Immediately you approve it will redirect you to your wallet,which means, you have successfully connected your wallet to swap.sonm official website. And it will create an SNM V2 ERC20 wallet address as seen below.

step6

Immediately you leave your wallet back to the swap.sonm website, automatically the SNM V2 wallet address will appear on the destination column signifying where the swap token(SNM) will go. Then proceed by clicking authorize
As seen below.

step6

Cause the was no SNM V1 token on my wallet to make the swap, after clicking on authorize it will show 'end block reach,token upgrade not allowed'

With this, i was not allowed to proceed to swap cause i didn't have any SNW V1 token to swap to SNW V2.

If I had SNW V1 token on my wallet, after click onauthorize it would have pop up a page requesting to confirm swap and once i confirm,my SNM V1 ERC -20 token would have been atomatically upgraded to SNM V2 ERC-20 token on my connected wallet.

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

In my understanding i think SONM token project is worth investing on, looking at the way it operate it very easy for investors to operate cause any device including mobile phones or any other device can join the network and start earning tokens regardless of their computing power cause it runs on a decentralized fog computing project.

According to technical analysis,SONM can bring about a very good returns when it comes to investment.

As at today being 23/sept/2021 the current price of SONM(Bep-20) is trading at $0.1649USD with a 24 hours trading volume of $186,231USD.

With this, it rise 3.12% in the last 24hrs.
Let assume i bought SONM for a 100dollars today i will get a total of around 572.7SNM.

According to research,technical analysts has forecast the price of SONM in the next 5years to be 1.78USD, with this 5years investment the revenue expected should be around +576.88%.
So with my presume current $100USD investment,I will be able to gain $684.88 in 2026

With this little analysis i made, I think SONM is a well profitable investment option, so it worth investing.

conclusion

Generally, token redenomination is a method developers of a certain token uses to attract more investors,makes token market becomes more liquid and lastly increase token transaction,it a simple way to revive a dead token project and also help grow the ecosystem lastly increase the quality of the token project. With this, it will attract more investors .
Once gain thanks to professor @wahyunahrul for the well explanatory and clarify lecture post indeed have learnt alot.