Patricia’s ambitious plan to repay customers comes with one major caveat
Last week, Patricia announced that it had converted customer funds into Patricia Tokens (PTK), but only after the company disclosed $2 million. Now the company said its plan to refund customers is tied to the company’s profitability. Nigerian crypto platform Patricia has announced that it will use a newly created debt management token – the Patricia Token – to compensate customers for $2 million in customer funds lost as a result of a hack. According to Patricia’s white paper, the smart contract locks up tokens — which are dollars of the respective clients’ assets — and gradually releases them each month. Although the company did not specify the token’s earning schedule, it was easy to see one important detail: customers will only get their money back if Patricia is profitable. According to Patricia’s white paper: “This [smart] contract locks up tokens and gradually releases them based on the profitability of the exchange. This approach aligns user rewards with the success of the platform, promoting transparency and trust.” As a private company, Patricia does not disclose its finances, and clients have questions about how they can independently ensure the company’s profitability.
The company’s CEO Hanu Fejiro Said: “OTC Desk is fully operational and growing and generating revenue. We are fully confident in the redemption of Patricia tokens and our ability to pay customers through our operations and fundraising revenue. He also added that Patricia is working with legal partners and the production team to initiate actions for the transparency.
The lack of a smart contract on Patricia’s bond also raises the issue. Regarding the token earning schedule, Fejiro said: “The token schedule is still in the early stages because users are not yet converting Patricia tokens. It will start on schedule when we restart the app.”
While public opinion is largely skeptical of Patricia’s token, the company’s founder hopes it will do the same as Bitfinex, a cryptocurrency exchange that successfully used the token to recover 119,756 bitcoins 11 months after they were compromised. in a hacking incident. But Patricia must do more to win over a naturally tired public; it needs to show more transparency, share more information about its smart contract and consider announcements before sharing them with the general public.