Patricia made it clear that it will function much like a “IOU” (I owe you) document, acting as a way for the exchange to acknowledge its debt to its consumers. Nigerian cryptocurrency exchange’s introduction of Patricia Token (PTK) Users responded to Patricia on social media by expressing distrust and some doubt on the reasons behind the action. Now, in response to that statement, the cryptocurrency exchange company has published a white paper to describe the purpose of Patricia Token. The newly published white paper claims that Patricia Token is not a stablecoin but rather a debt token given to clients to manage users’ debt.
According to Patricia, it will function as an IOU document, allowing the exchange to acknowledge its debt to its users while also guaranteeing to pay holders 1 Tether for each Patricia Token in the future.
A breach caused Patricia, a Nigerian cryptocurrency exchange, to stop accepting deposits and withdrawals in April 2023. The disclosures, however, did not appease consumers who had been unable to access their funds for months as a result of the breach. They prompted inquiries about the token’s backing and Patricia’s decision to convert them without the customers’ permission. The timing of their ability to access their funds is a crucial concern. The PTK white paper doesn’t provide a clear response to this query.
The report claims that customers whose balances in Bitcoin and naira were converted into PTK have the opportunity to redeem it for USDT, which may then be swapped for other cryptocurrencies or fiat currencies like naira. The asset’s worth in US dollars as of April 29, 2023, will be used to calculate all conversions. However, the launch of the new Patricia Plus App will give users access to PTK tokens, which will act as their debt tokens, for consumers who experienced losses in BTC and naira as a result of the incident.
Following a cyberattack that saw 119,756 BTC (about $72 million at the time) lost, Bitfinex introduced BFX in 2016. Similar to Patricia’s strategy, Bitfinex released a debt token called BFX to make amends for clients impacted by the incident and later bought back these tokens from customers
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