Patricia, a Nigerian cryptocurrency exchange, has announced the launch of its native token, PTK, which will replace customers’ Bitcoin and Naira balances. However, the move has raised suspicions and criticism from the local crypto community.
Patricia, a Nigerian cryptocurrency exchange, has unveiled its own native token, named Patricia Token (PTK), which it claims is a stablecoin pegged to the US dollar.
However, the launch has sparked more controversy than applause within the local crypto community, as it follows a security breach that resulted in fund losses in May 2023 and ongoing difficulties in accessing funds since April.
History of PTK
PTK is a digital asset specific to Patricia, a platform that allows users to buy and sell cryptocurrencies, gift cards, airtime, and other digital services.
According to Patricia’s official communication on X (formerly Twitter), PTK is a stablecoin that maintains a 1:1 ratio with the US dollar (1 PTK = $1).
The company announced its intention to migrate its exchange operations to the Patricia Plus app, where PTK will be used as the main currency.
This means that customers’ existing bitcoin and naira balances will be converted to PTK without their consent.
This move has raised several concerns and questions among Patricia’s customers and the wider crypto community in Nigeria.
Many have expressed dissatisfaction and distrust of Patricia’s decision, citing the lack of transparency, accountability, and legitimacy of PTK.
Some have even speculated that Patricia is planning an exit scam, which could leave customers who have funds stuck on the platform in a dire situation.
Red Flags Surrounding PTK Token
Several indicators suggest that PTK is not a reliable or trustworthy token. Some of them are:
- PTK is not listed or recognized by major cryptocurrency aggregators, such as CoinMarketCap or Coingecko. These platforms provide comprehensive information about tokens, such as their real value, issued quantity, contract address, and launch blockchain. Without this information, verifying or validating PTK’s existence or performance is hard.
- PTK does not run on any widely adopted blockchains commonly used by exchanges to launch their native tokens. For example, Binance Coin runs on the Ethereum network, and SOL runs on the Solana blockchain. These blockchains offer security, scalability, interoperability, and compatibility with other platforms and tokens. However, PTK does not seem to have any connection or affiliation with any established blockchain network.
- Patricia did not obtain customer consent or approval before converting their balances to PTK. This unilateral action violates the rights and preferences of customers who may want to keep their bitcoin or naira balances or exchange them for other cryptocurrencies or fiat currencies.
In addition, Patricia did not provide any clear or detailed explanation or justification for this decision or how it will benefit customers.
