The announcement of Patricia Token (PTK) by Nigerian crypto alternate 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 alternate firm has launched a white paper looking for to clarify the meant perform of the Patricia Token.
In line with the launched white paper, the Patricia token just isn’t a steady coin however a debt token, issued to prospects to handle customers’ debt. Patricia stated that it’ll function equally to an IOU (I owe you) doc, serving as a method for the alternate 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 alternate Patricia halted withdrawals and deposits as a consequence of a breach. Nonetheless, prospects who haven’t been in a position to entry their funds for months as a result of 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 serious query is when they’ll be capable to entry their funds. The PTK whitepaper doesn’t supply a selected 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 line 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. Nonetheless, the brand new Patricia Plus App launch will present prospects who suffered losses in BTC and naira as a result of breach entry to PTK tokens that may 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 finally repurchased these tokens from prospects.
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