Patricia, a Nigerian cryptocurrency exchange, has unveiled its own native token, Patricia token (PTK). However, this launch has sparked mixed reactions among the local crypto community.
Native tokens are digital assets that are exclusive to a particular blockchain platform or cryptocurrency exchange. They are created and issued directly by the exchange or platform, such as Binance Coin (BNB) on the Binance exchange, Ether (ETH) on the Ethereum network, and SOL on the Solana blockchain.
In their official statement on X (formerly Twitter), the company explained their intention to move exchange operations to the Patricia Plus app. The newly introduced native token, which the company claims is a stablecoin pegged 1:1 to the US dollar (1PTK = $1), is expected to replace customers’ existing bitcoin (BTC) and naira balances.
This development follows the company’s disclosure of a security breach in May 2023, resulting in fund losses. Despite the company’s assurance that customer funds were not affected, users have faced ongoing difficulty in accessing their funds since April.
The response to Patricia’s announcement has caused speculation about the possibility of an exit scam, thereby leaving customers with funds stuck on the platform in a vulnerable position.
Notably, posts by members of the local crypto community express several indicators of concern regarding Patricia’s PTK. The token is absent from major cryptocurrency tracking platforms such as CoinMarketCap and Coingecko, which provide comprehensive information about tokens, including their real value, issued quantity, contract address and launch blockchain.
In addition, PTK is not available on blockchains typically used by exchanges for launching native tokens. For instance, PayPal’s newly introduced stablecoin, PYUSD, is accessible on the Ethereum blockchain, where it was first launched.
Patricia also revealed their intention to convert all outstanding balances to PTK without customer consent. This unilateral decision has caused worry among users, as many fear their inability to exchange the token for fiat currency or alternative cryptocurrencies such as bitcoin.
If users initiate withdrawals in large numbers, an influx of withdrawals could cause PTK to lose its peg, leaving those who are unable to withdraw their funds stranded.