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Introduction of PTK by Patricia
Patricia, a foremost cryptocurrency exchange company in Nigeria, is shaking up the crypto market in Nigeria with the unveiling of its 'in house' digital asset named Patricia Token (PTK). However, it's causing quite a stir, as the local crypto community seems to express more apprehension than approval.
Native tokens are distinctive digital assets issued by a particular blockchain or crypto exchange. Some examples include Binance's BNB, Ethereum's ETH, and Solana's SOL. These tokens are directly created and released by these platforms.
Operation Transition to Patricia Plus App
In a formal broadcast via X (formerly known as Twitter), Patricia indicated its plan to shift exchange operations to the Patricia Plus application. The company is betting on their newly introduced native token, a supposed stablecoin, to replace current Bitcoin (BTC) and Nigerian Naira balances of its customers. According to the firm, PTK is pegged at a 1:1 ratio against the US dollar.
Prior Security Breach Incident
This new launch comes after the company had earlier reported a security infraction leading to loss of funds in May 2023. Despite Patricia's reassurances that customer funds were not impacted, users of the platform have run into a wall of difficulties while attempting to access their funds since April.
Speculation Surrounding Patricia's Move
Reactions to Patricia's big reveal have sparked conversations amidst fears of an impending exit swindle. Users are now worried as their funds are stuck on the platform, potentially leaving them in a tricky situation.
Concerns Over PTK
Echoed by several vocal local crypto buffs, there are red flags concerning the introduction of PTK. For starters, there's a glaring absence of the token on well-known cryptocurrency aggregators like CoinMarketCap and CoinGecko. These platforms are typically an exhaustive resource of token information including real value, total supply, contract address, and launch platform.
Further adding to the suspicion, PTK is not present on commonly used blockchains for launching native tokens by exchanges. Notably, PYUSD, the recently introduced stablecoin by PayPal, was launched and can be accessed on the Ethereum blockchain.
Going Rogue with Customer's Funds?
In Patricia's X statement, the firm announced its intention to convert existing balances into PTK with no requirement for client approval. This decision has users on edge as they're concerned about their ability to exchange PTK for cash or other cryptocurrencies such as Bitcoin. If there's a surge of users trying to cash out, the resulting outflow could destabilize PTK’s peg, essentially stranding those unable to withdraw.
