Nigeria-based Crypto Exchange Digital Token Launch Goes through Scrutiny

Patricia, a crypto exchange that operates in Nigeria, has disclosed the release of its latest crypto token. Patricia token (or PTK) is the name of the native token of the platform. Nonetheless, this token launch has paved the way for more suspicion as compared with appreciation around the crypto community. Local tokens are known as digital assets and they operate on a particular crypto exchange or blockchain company.

Nigerian Patricia’s Token Launch Attracts Enormous Scrutiny

The exchange or the platform is solely responsible for the creation as well as the issuance of the respective assets. One instance of the local token takes into account the Binance Coin that is specified for the Binance exchange. Ether is another example as it operates on the Ethereum network while the SOL token is specific to the Solana blockchain.

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The platform made a formal statement on X recently. In that statement, the platform disclosed its strategy to convert exchange activities to the application called Patricia Plus. The latest introduced local token plays the role of a stablecoin that is pegged to the dollar. In this way, the token can be traded with the dollar at a 1:1 ratio.

The major issue here is

If u can afford to give people(converting their balance) a stable coin backed by Usd

Then Why not just give them their tokens back ? https://t.co/GKgBQdi4Yg

— Solomon_Gift (@Crypto__hub) August 19, 2023

According to the expectation, the token will replace the existing naira and Bitcoin balances of the consumers. The development was witnessed after the firm’s former disclosure concerning a security breach. That exploit resulted in huge fund losses back in May this year. Despite claiming that client funds are not affected, the clients have gone through several difficulties.

The Speculations Regarding an Exit Scam Raise among the Community

They have been finding it difficult to access the funds since 2023’s April. The response to the announcement of Patricia has raised speculation regarding fears of a likely exit scam. Such an incident could pose a precarious situation to the clients whose funds are held on the platform.