Nigerian cryptocurrency exchange Patricia’s announcement of the launch of the Patricia Token (PTK) has been greeted with questioning and skepticism from users who took to social media to question the motives behind the move. Now, in response to this reaction, the cryptocurrency exchange has released a white paper that attempts to explain the intended function of the Patricia token.
according to freed In the white paper, the Patricia token is not a stable currency, but a debt token issued to customers to manage the user’s debt. Patricia said that its operation is similar to the IOU (I owe you) document, as a means for the exchange to recognize its debt to users, and promises to pay 1 USDT to the holder for each Patricia Token in the future.
In April 2023, Nigerian cryptocurrency exchange Patricia halted withdrawals and deposits due to irregularities. However, customers who have been unable to withdraw their funds for months due to the breach have not been appeased by these announcements. They raised questions, including how the tokens were backed and why Patricia switched them without the client’s consent. A major question is when they will be able to get funding. The PTK white paper does not give a specific answer to this question.
Understanding Patricia Token – Our Promise to You
We remain committed to our transparency commitment, working to resolve any open issues and innovating better solutions for you. pic.twitter.com/Cq8Rk3mReC
— Patricia (@PatriciaSwitch) August 24, 2023
According to the paper, users who convert their BTC and naira balances to PTK will have the option to convert them to USDT, which can subsequently be exchanged for other cryptocurrencies or fiat currencies such as naira. All conversions will be based on the USD value of assets as of April 29, 2023. However, the newly launched Patricia Plus app will provide customers who have suffered losses in BTC and naira due to breaches with access to PTK tokens, which will serve as tokens for their debts.
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Bitfinex launched BFX in 2016 after a hack resulted in the loss of 119,756 bitcoins, or $72 million at the time. Similar to Patricia’s approach, Bitfinex issued debt tokens called BFX to compensate customers affected by the hack, and eventually bought back these tokens from customers.
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