Token redenomination is the process of simplifying a token in a way that smaller investors can afford to invest in a project without affecting the value of the said token. This could be said differently as the process of dividing a token in multiple places such that its supply is increased and small investors can afford to get the token in smaller quantities.

Token redenomination helps in boosting a project and increasing the number of investors. Once a project developer considers redenomination, he will sent a not or letter to the investors to agree or reject the proposal, as well as decide the fraction or ratio in which the token would be split into.

Token redenomination is not really different from currency redenomination or asset redenomination like stock split of a conventional stock market. They all stand for one thing, which is simplification of the currency, token or asset in question. The only minor difference is the way they are implemented. While token redenomination require the developer to send a letter or proposal to investors/token holders, asset redenomination requires a poll where the shareholders' vote for or against the idea.

No. 2 The Advantages and Disadvantages of token redenomination

Advantages

1. It increases liquidity of the market: Once there is token redenomination, the token would witness more transactions than it was before the development. New investors will buy the new token and old investors will swap and transact more with them.
2. The project become more developed and pronounced: Another advantage of token redenomination is that it helps in publicizing a project.
3. It makes the project attractive. One thing about token redenomination is that more often than not, investors perceive something big coming with a token redenomination, this will draw them closer to invest in the project.
4. Boost Market performance of the token: Token redenomination also help in boosting the market capitalisation, circulating supply, price, etc.

Disadvantages of token redenomination

1. Tokens might be lost in the process due to transaction or gas fee charged,as this is applicable in some projects.
2. Hackers might use that opportunity to create wrong links and sites for swap, and they will end up stealing the tokens.
3. Token redenomination is stressful in some cases, which makes users lose interest in the project.

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

There are both advantages and disadvantages of token redenomination. In addition much as the advantages are appealing to the eye, the disadvantages of token redenomination should also be considered. I think some tokens so not need redenomination. Projects that have been well built, and are doing well should continue. While the ones that have very high demand creating difficulty for small investors should go for 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)

One project that is undergoing token redistribution is Pundix. It is currently on token reduction swap where 1000 NPXS is converted to 1 PUNDIX.

The steps involved in the swap process are;

Step 1. Login to the Pundix website.

1. On the homepage, click on "swap now". You will be redirected to the swap site.
   

2. Connect your wallet (Those using Trustwallet, imToken can connect through the walletconnect option).

1. Approval stage: Here, you have to approve your NPXS in order to swap. Note that gas fee will be charged in ETH.

1. Place Order: By clicking on "place order", your swap transaction would be sent.

1. Your transaction will be successful and your PUNDIX will be in your wallet. Note: You can click on "view transactions" to view the just completed swap.

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

Pundix in my own opinion is a good project for investment. Apart from the fact that it runs on the Ethereum blockchain which gives it the potentials of climbing high, it also has high profiles connected to the project.

Although there is no data concerning its market capitalisation, Pundi X has a current supply of 67,680,592.2222 with a circulating supply of 39,614,424.814 PXS coins.

It also has a maximum supply of 301,295,248 PXS coins. This shows that the the coin has a high supply and is circulating, meaning that there will be no dumping. According to coinmarketcap, the current price of PundiX at the time of writing is $1.431 after growing from $1.37 in the last 24 hours.

Predictions also have it that the coin will exceed its all time high (ATH) before 2021 runs out.
According to CoinSwitch Kuber, Pundi X is very promising. This is also another reason to believe that it is a good investment.

Pundi X is a very promising cryptocurrency project that aims to transform the retail payment system by enabling spending cryptos as smoothly as a credit card.

6. Conclusion

Token redenomination having to do with simplification of a token without reducing its value, has some great advantages as well as some down sides. In whatever way, some projects really do need token redenomination to boost the project's performance. It is also a good way to advertise a project and draw more investors to it. Project developers should be sure to put things in place so that tokens would not be lost in the process of redenomination.
Thank you so much for your time. I really appreciate!