Patricia CEO releases statement on token conversion

Alex Omenye
Alex Omenye

The CEO of the cryptocurrency exchange Patricia, Hanu Fejiro, has issued a statement to set the record straight regarding the conversion of funds in the Patricia wallet to Patricia tokens.

In a statement to an exclusive community, Fejiro stated that $PTK release was mainly misinterpreted.

According to him, Patricia Token was given to clients to help them manage their debt rather than being a stablecoin.

“All customers’ funds would be accounted for 1:1, pegged to a stable coin, USDT. We would be redeeming these debt tokens from our customers monthly.” Fejior said.

He added, “All affected assets from the previously announced security breach are those that were pegged to the Patricia token (BTC, USD, and Naira). These assets will be converted to Patricia Tokens at their respective trading rates as of the 29th of April 2023. Every other asset, e.g., ETH, XRP, DOGE, etc., is unaffected.”

This basically suggests that the token is an internal token used to handle debt for assets that were lost as a result of Patricia’s security incident. Its value is tied to the USDT and would be supported by the USDT; it does not change, rise, or fall in value.

Only consumers who have successfully completed the asset validation procedure will have access to the token, which is tied to the stablecoin USDT. The sole currency that can be exchanged for the tokens is USDT, which users can do on-chain.

Customers who have completed the Asset Recovery Form will be given priority for withdrawals once the app relaunches, according to the statement, and users will be able to see the total amount available for withdrawal in their accounts.

You cannot purchase $PTK. In essence, it is a debt instrument that holds the deficit that Patricia owes its clients. It cannot be purchased with other assets and is only issued to customers with affected balances.

Patricia mentioned a specific Patricia Token last Friday when it was introducing its most recent redesign as a “Patricia Plus app.” This Patricia Token ($PTK) will be a stablecoin backed by the US dollar, per the release on X previously known as Twitter.

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