The introduction of Patricia Token (PTK) by the Nigerian cryptocurrency exchange Patricia was met with skepticism and suspicion from its users, prompting them to voice their concerns on social media. In response, Patricia has published a white paper to clarify the purpose and functionality of PTK.

According to the white paper, PTK is not a stable coin but rather a debt token issued to help users manage their debts.

It functions akin to an IOU (I owe you) document, symbolizing the exchange’s acknowledgment of its debt to users and its commitment to redeeming each Patricia Token for 1 USDT ($1.00) in the future.

The necessity for such a token arose in April 2023 when Patricia had to suspend withdrawals and deposits due to a security breach.

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This left customers unable to access their funds for an extended period, causing frustration and raising questions about the token’s backing and the conversion of their assets without consent.

Importantly, users were eager to know when they would regain access to their funds, although the PTK white paper did not provide a specific timeline for this.

The white paper did, however, outline an option for users whose BTC and naira balances had been converted into PTK.

They now have the choice to exchange PTK for USDT, which can then be traded for other cryptocurrencies or fiat currencies, including the Nigerian naira. This move by Patricia aims to address some of the concerns raised by its user base.