TOKEN REDENOMINATION

Token redenomination is the process of fine - tuning a blockchain project's token in order to create a new token to replace the previous one, which may have been devalued or had a value that was too expensive for low-capital investors to pay. When a token is redenominated, a new value is assigned to it, as well as a new logo and a new name. It refers to the process of simplifying a currency/asset without lowering its value. The developer of a currency may take steps to improve liquidity by redenominating the currency.

The fact that old notes are always exchanged for new currencies when it comes to fiat currencies differentiates token redenomination from currency or other asset redenomination. Everything is done digitally in the case of tokens, though. If a physical item or a fiat currency is redenominated, for example, the holders of such assets or currencies will take them to a bank or other appropriate agency to exchange them for new ones at a preset rate. It is done through an exchange for a token.

THE PROS OF TOKEN REDENOMINATION

Below are the advantages of token redomination:

Redenomination can help to increase the token's value in some situations when it was severely depreciated before the redenomination. It will attract additional investors, both large and small, who will participate in the token and contribute more cash to the enterprise.When a token is redenominated, the number of investors increases, and as the number of investors grows, so does the token's buy and sell power.

Token redenomination allows investors with little resources to participate. When a token gets redenominated, vast numbers of people who are interested in it but don't have a lot of money can still invest in it. As a result, the developer will benefit, and earnings will be available to fund future projects.

THE CONS OF TOKEN REDENOMINATION

It will cost you money to exchange your old token for the new one that was made accessible following the redenomination. It may be a very hefty cost in certain situations, while it may not be that high in others. However, the fact that you will be charged for it may deter some individuals from exchanging their old tokens for the new one.

Getting accustomed to new monetary units can be difficult at times, especially when redenomination necessitates continual change. The token you receive after the exchanging may be less than the quantity of token you traded.

DO ALL CRYPTOCURRENCIES NEED TOKEN REDENOMINATION

Some tokens, I believe, do not require redenomination. Projects that have been well-constructed and are succeeding should be continued. While those with a high demand that makes it impossible for small investors to invest may consider redenomination. When a cryptocurrency project is not performing as planned, token redenomination is performed so that the project's creators can make the required adjustments and repairs. However, if the project is proceeding as anticipated, token redenomination will not be required for such a project's token.

HOW TO CONVERT AN OLD TOKEN TO A NEW TOKEN

For this demonstration I will be making use of the Pundi X token website and will be doing a step by step on how the token can be coverted

The first step is to login to the Pundi X website
Once you open the website you click on the swap now icon on your system interface

After you click on the swap now icon, you will be taken to the swap site

Connect your wallet (I will be connecting my trust wallet using the wallet connect as shown in the above image)

Approval of your NPXS

Now you can place your order

With the above steps you can be rest assured that your transaction is successful i.e if the necessary conditions are met and your PUNDI X will be in your wallet

IS THE PUNI X TOKEN WORTH INVESTING IN? (ANALYSIS)

The Pundi X token that I analysed earlier is a cryptocurrency that aims to make cryptocurrency spending as simple as using a credit card. The NPXS coin, currently known as PUNDIX, was created with the primary goal of being utilized on Ethereum-based POS machines. When this goal is met, most impoverished areas will have access to basic financial services.

Due to the fact that there are over twelve thousand cryptocurrencies, the Pundi X token is rated 233 on coinmarketcap, which indicates that the token project is a very excellent project. It's worth noting that it's on the watchlists of over 37,636 coinmarketcap users, indicating that the project has piqued the curiosity of a large number of investors. PundiX's current price, as of writing, is $1.29, according to coinmarketcap as shown in the image above.

CONCLUSION

The price of a token rises as interest in it grows. Investors with larger money will be able to invest in that token again, although liquidity will be problematic owing to the small number of investors. The purpose of redenomination is to remove all investment obstacles. It's also a great method to promote a project and attract new investors. Project developers should ensure that no tokens are lost during the redenomination process.

@wahyunahrul