Nigerian Crypto Exchange Patricia Faces Skepticism Over New Patricia Token (PTK)
Summary:
Nigerian crypto exchange Patricia faces skepticism over the introduction of its Patricia Token (PTK). In response, the company releases a white paper to explain its purpose as a debt token. However, users remain frustrated about the breach and unanswered questions regarding access to their funds. The paper outlines the option to redeem PTK for USDT and highlights the launch of the Patricia Plus App for affected customers. This approach is similar to Bitfinex's use of debt tokens following a hack.
Nigerian cryptocurrency exchange, Patricia, faced skepticism and suspicion from users following the announcement of the Patricia Token (PTK). In response to the backlash, the company has released a white paper outlining the purpose of the token. Contrary to initial beliefs, the PTK is not a stable coin, but rather a debt token that acknowledges the exchange's debt to its users. Patricia promises to repay PTK holders with 1 USDT for each token in the future. However, customers who have been unable to access their funds since the breach in April 2023 remain frustrated and skeptical. They question the backing of the token and the conversion of their balances without consent. Additionally, uncertainties around when they will regain access to their funds persist. The recently released white paper does not provide a specific answer to this question. Nonetheless, according to the paper, users can redeem their PTK for USDT, which can then be exchanged for other cryptocurrencies or fiat currency like the naira. All conversions will be based on the US dollar value of the assets as of April 29, 2023. The launch of the Patricia Plus App aims to provide relief to customers who suffered losses in BTC and naira during the breach. These customers will have access to PTK tokens, which will serve as their debt tokens. This approach mirrors Bitfinex's introduction of BFX in 2016 following a hack that resulted in the loss of a significant number of bitcoins. Bitfinex issued BFX as a debt token to compensate affected customers and eventually repurchased these tokens.
Published At
8/30/2023 10:52:56 AM
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