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The announcement of Patricia Token (PTK) by the Nigerian crypto exchange Patricia has been met with skepticism by users. The main reason for this skepticism is the company officials choosing to make the announcement through X instead of an official statement. Following the reaction received, Patricia officials have published a white paper for PTK token.
Users Will Recover Their Assets with This Method
According to the published white paper, Patricia token is introduced not as a stable coin but as a debt token given to customers to manage their debts. Patricia stated that it will serve as a tool for the exchange to accept its debt to its users similar to an IOU document and promise payment to the owners of each Patricia Token in the future.
In April 2023, the Nigerian crypto exchange Patricia stopped withdrawal and deposit transactions due to a breach, but customers who have been unable to access their funds for months have not been reassured through announcements. Users raised questions about how the token is backed and why Patricia converted them without customer approval. One of the most important questions is when they will be able to access their funds. The PTK white paper does not provide a specific answer to this question.
Bitfinex Used the Same Method in 2016
According to a local newspaper, users whose BTC and other crypto balances are converted to PTK will later have the option to use USDT, which can be exchanged for other cryptocurrencies or fiat currencies like Nigerian Naira. All conversions will be determined based on the crypto asset’s value in USD as of April 29, 2023. Additionally, the new Patricia Plus Application will provide access to PTK tokens, which will serve as debt tokens to customers who suffered losses in BTC and Nigerian Naira due to the breach.
In 2016, Bitfinex introduced BFX after a breach resulted in the loss of 119,756 Bitcoins (valued at $72 million at that time). Similar to Patricia’s approach, Bitfinex issued a debt token called BFX to compensate affected customers and eventually recovered these tokens from customers.
