The announcement of Patricia Token (PTK) by Nigerian crypto change 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 change firm has launched a white paper looking for to clarify the supposed operate of the Patricia Token.
Based on the launched white paper, the Patricia token shouldn’t be 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 way for the change 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 change Patricia halted withdrawals and deposits attributable to 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 provide a particular 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 likewise innovate higher options for you. pic.twitter.com/Cq8Rk3mReC
— Patricia (@PatriciaSwitch) August 24, 2023
Based on the paper, customers whose BTC and naira balances had been become PTK have the choice to redeem it for USDT, which may subsequently be exchanged for different cryptocurrencies or fiat like naira. All conversions will likely 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 method, Bitfinex issued a debt token named BFX to compensate prospects affected by the hack, and ultimately repurchased these tokens from prospects.
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