Key Takeaways
- Patricia has announced that the shares obtained through the conversion will be managed by a trusted third-party trustee licensed by the SEC
- Patricia is offering its users the opportunity to transform their debt tokens into convertible notes at a favorable discount
Patricia, a Nigerian cryptocurrency exchange’s CEO, Fejiro Hanu, has confirmed that customers now have the option to convert their owed funds into Patricia shares through the launch of Patricia Token (PTK). This unconventional strategy aims to manage users’ debt while also serving as a crucial component of the firm’s fundraising and debt reorganization efforts. However, this decision has not been met with universal approval, as some agitated users voice their discontent.
According to a statement by the CEO, this unique approach is in anticipation of the firm’s upcoming app relaunch and as part of its broader fundraising initiative. Patricia is offering its users the opportunity to transform their debt tokens into convertible notes at a favorable discount, effectively converting owed funds into an ownership stake in Patricia.
One key feature of this conversion process is the assurance of complete transparency. Patricia has announced that the shares obtained through the conversion will be managed by a trusted third-party trustee licensed by the Securities Exchange Commission (SEC). This safeguard is intended to provide users with peace of mind regarding the handling of their converted debt tokens.
Despite the intended benefits, some users have expressed their dissatisfaction with this unconventional approach. Agitated customers took their concerns to a Patricia-affiliated outlet, only to find it unstaffed.
This controversy is not the first challenge Patricia has faced in recent months. In May 2023, the exchange confirmed a loss of $2 million due to a cyber hack. It was further revealed that out of its three subsidiaries, namely Patricia Personal, Patricia OTC Desk, and Patricia Business, only Patricia Personal, the retail trading application, was affected by the breach. This incident left customers struggling to access their funds.
In an unexpected move to resolve the situation, Patricia replaced customers’ assets, previously held in Naira or Bitcoin, with a newly launched native token known as Patricia Token (PTK). This transition occurred without the consent of the affected customers.
When the announcement of PTK was made, it raised concerns and led to speculation that the company might be planning an exit scam. However, Patricia clarified that the tokens were actually debt tokens, functioning as IOUs, intended to acknowledge the debt the company owed to its customers.
