Greetings and blessings to everyone at Steemit Crypto Academy, I address to Professor @wahyunahrul with a big and cordial greeting, after having read and understood his lecture on token redenomination, here is my homework.

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

Before defining what a token redenomination is, let me first mention what a token is. A token is a digital asset that we can use within any project ecosystem. Tokens, unlike cryptocurrencies, need another blockchain platform that is not their own in order to work, one of the most used platforms is Ethereum, which is used to create tokens since it provides the function of smart contracts.

When a token is issued on any blockchain, and manages to achieve a high value in price and is in high demand in the market it is a success. What happens as a consequence is that the token becomes unattainable and impossible to acquire for small investors who have less capital to invest as opposed to larger and bigger investors. When this happens the creators and owners of the token make a joint decision to redenominate the token.

So what is a token redenomination?

In simple words, token redenomination is a decision made by the creators, developers and owners of the token in order to increase the buying and selling power, simplifying the price of the token and thus making it accessible to small investors, also this will cause an increase in liquidity and decrease inflation in the crypto market.

The token redenomination differs from other redenominations, since this is done in order to give small investors the accessibility to purchase the token and this is to improve liquidity in the crypto market and decrease its inflation and it is also a decision taken by the creators as a whole. On the other hand when we talk for example about the national currency of some country, the redenomination is the replacement of the bills of a national currency by bills with a smaller redenomination , in short the additional zeros will be eliminated, this can bring imbalance in the national economy and hyperinflation.

2). Mention the advantages and disadvantages of Token Redenomination

Advantages

• When token redenomination is performed, the token becomes accessible to small investors, and they can buy by investing in the token.

• It increases transactions, and this happens thanks to the fact that small investors were able to join and increased the operations of purchases and sales.

• Increased liquidity and decreased inflation in the market.

Disadvantages

• It may cause panic in some of the investors, causing some of them to abandon the project, because they do not have the knowledge of what a token redenomination is.

• One of the causes of some investors abandoning the project is because the name of the token has been changed, and they are not aware of this change, so they leave the project.

• The token redenomination is done by voting, and as it is by voting and the majority of investors voted for the redenomination, and those who voted no to the redenomination, some who did not agree also leave the project.

• After the token redenomination, there is an interference or obstacle which is the transaction fees that will be charged by the platforms so that investors can convert the tokens.

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

In my personal opinion, I believe that not all crypto projects should perform token redenomination, because to perform a redenomination should influence different factors that are presented or not, so that the creators, developers or owners are in the obligation to perform a token redenomination.

For them to perform a token redemption will depend on these factors or events and also if they are presented or not presented in the crypto project. These factors are:

1. if the token becomes inaccessible to small investors and if this causes it to decrease liquidity in the market.

2. apart from the token becoming inaccessible, also decreased transactions and demands for buying and selling the token.

3. decreased liquidity and increased inflation in the market.

For a crypto project to perform a token redenomination it must present these events that I mentioned above, in my opinion if the project does not present these factors and everything is going well with the token it should not perform a token redenomination.

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

After studying and researching I made the decision to choose the PUNDI X token project. This PUNDI X token is a token that is issued and runs on the Ethereum blockchain (ERC20 token) and this token is stored in a wallet.

This PUNDI X token is the redenomination of NPXS to PUNDI X. I understand that the Pundi X team and Bitcobie give us the recommendation that we store our NPXS tokens in some wallet where we can control all the private keys, and the best option is to use the MetaMask interface.

Here are the steps we need to perform to convert NPXS token to PUNDI X token, below:

1) Enter the official PUNDI X token page, enter this link https://www.pundix.com/

• Select the Swap Now option, which is on the right side where NPXS is now PUNDIX.

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2) It opened the page where the conversion will be performed, here we must connect to our wallet, in my case as shown in the image, I will select MetaMask.

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3) Here when showing my wallet in MetaMask, I will select the Next option.

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4) I was prompted to confirm in MetaMask, where I will select where it says Connect, as shown in the following image.

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5) Here we observe in the screenshot, where it is already connected with the wallet, to then enter the amount we want to convert from NPXS token to PUNDI X token.

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• In my case, as we can see in the previous image, I do not have the necessary amount to convert from NPXS token to PUNDI X token.

As we observed in the previous steps, and see the images, this process of converting from NPXS token to PUNDI X token is quite simple and easy to understand.

After performing these steps, what we must do is to put the amount of NPXS token that we want to convert and we will automatically see the amount of PUNDI X token that we are going to acquire. After accepting the conversion, our token will be converted proportional to 1000: 1. This operation has a fee, the transaction will charge a fee of ETH.

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

Based on the little I have researched, and I say little because to say with all certainty that if it is worth investing in this token PUNDI X, I should perform a good technical analysis to be able to say with totality that if it is worth investing.

I think yes for the moment to perform this task, since this PUNDI X token works on the Ethereum blockchain, and this makes it a good asset for investment.

Researching and observing, I could notice on CoinMarketCap that it has the great power to go up as well as down in price, and this makes it profitable for investors. This is also observed in the graphs. We will observe it in the following screenshots.

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Conclusion

Token redenomination is an excellent way to improve and give opportunities to small investors, because it gives you the possibility to access those good profitable tokens in the crypto market. Like every good cryptocurrency project and token redenominations has its advantages and disadvantages, the important thing here for us investors is to identify well when the redenomination of some token will be profitable for us.

In summary, performing this task increased my capacity of analysis and study, to be able to carry out a good investment in some crypto project and to know what is a good token redenomination.

@wahyunahrul

THANK YOU VERY MUCH