Nigerian Crypto Exchange Patricia's Token Launch Raises Concerns

The introduction of Patricia Token (PTK) follows security breach and fund losses in May 2023

According to a report published by Cointelegraph, Nigerian cryptocurrency exchange Patricia has announced the launch of its native token, Patricia Token (PTK), causing concern within the local digital asset community. The 1:1 USD-pegged stablecoin is intended to replace customers' existing bitcoin and naira balances on the Patricia Plus app.

However, following a security breach that led to fund losses in May 2023, clients have faced ongoing difficulties accessing their funds, causing speculation about the token's launch and a potential exit scam. Some red flags include PTK's absence from major cryptocurrency aggregators such as CoinMarketCap and Coingecko, and Patricia's intention to convert outstanding balances without customer consent raising fears about redeemability.

There are concerns that if clients initiate mass withdrawals, PTK could lose its peg and leave some users stranded.