Nigeria’s Patricia crypto exchange seeks to explain its token amid confusion

The announcement of Patricia Token (PTK) by Nigerian crypto trade Patricia was greeted by customers with scepticism and a few suspicion, as they took to social media to query the motives behind the transfer. Now, in a response to that response, the crypto trade firm has launched a white paper searching for to elucidate the meant operate of the Patricia Token.

In keeping with the launched white paper, the Patricia token will not be a steady coin however a debt token, issued to prospects to handle customers’ debt. Patricia mentioned that it’s going to function equally to an IOU (I owe you) doc, serving as a way for the trade to acknowledge its debt to its customers, and promising to pay holders 1 USDT for every Patricia Token sooner or later.

In April 2023, Nigerian crypto trade Patricia halted withdrawals and deposits as a consequence of a breach. Nevertheless, prospects who haven’t been capable of entry their funds for months because of the breach weren’t mollified by the bulletins. They raised questions, together with how the token was backed and why Patricia transformed them with out buyer consent. A significant query is when they may be capable to entry their funds. The PTK whitepaper doesn’t supply a particular reply to this query.

Understanding Patricia Token – Our Dedication to You

We stay dedicated to our promise of transparency, our dedication to resolve all pending points and in addition innovate higher options for you. pic.twitter.com/Cq8Rk3mReC

— Patricia (@PatriciaSwitch) August 24, 2023

In keeping with the paper, customers whose BTC and naira balances have been turned into PTK have the choice to redeem it for USDT, which may subsequently be exchanged for different cryptocurrencies or fiat like naira. All conversions might be decided by the asset’s US greenback worth as of April 29, 2023. Nevertheless, the brand new Patricia Plus App launch will present prospects who suffered losses in BTC and naira because of the breach entry to PTK tokens that can function their debt tokens.

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In 2016, Bitfinex launched BFX after a hack resulted within the lack of 119,756 bitcoins (equal to $72 million again then). Equally to Patricia’s strategy, Bitfinex issued a debt token named BFX to compensate prospects affected by the hack, and ultimately repurchased these tokens from prospects.

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