Nigerian crypto platform Patricia recently announced a strategy to compensate customers who were affected by a $2 million hack.
This innovative approach hinges on the introduction of the Patricia Token (PTK), which represents the assets of affected customers.
However, what sets this plan apart is the condition attached to the reimbursement: customers will only receive their funds if Patricia becomes profitable.
Patricia’s vision for customer compensation is outlined in its white paper, where it describes a smart contract that will secure the tokens. These tokens, which equate to the respective customers’ assets, will be released gradually on a monthly basis.
While specifics regarding the token’s vesting schedule were not disclosed, one fundamental principle is crystal clear: the return of funds is directly correlated with Patricia’s profitability.
The white paper states, “This [smart] contract will lock the tokens and gradually release them based on the exchange’s profitability. This approach aligns users’ compensation with the success of the platform, promoting transparency and trust.”
However, being a private company, Patricia does not publicly disclose its financials, leaving customers with questions about how they can independently verify the company’s profitability.
Hanu Fejiro, the CEO of Patricia, expressed unwavering confidence in their approach, saying “Our OTC Desk has been fully operational, consistently generating revenue and experiencing substantial growth. We are entirely committed to redeeming Patricia tokens and repaying our customers using the proceeds from our operations and our fundraising efforts.”
Fejiro also revealed that Patricia is actively collaborating with legal partners and the product team to introduce features that guarantee transparency.
Nonetheless, valid concerns have been raised about the absence of a smart contract for Patricia’s debt token.
Fejiro clarified the situation regarding the token’s vesting schedule, explaining, “The vesting schedule is currently in its early stages, as users are yet to convert to Patricia Tokens. This process will commence on a scheduled basis once we relaunch the app.”
Public opinion remains somewhat skeptical about Patricia’s debt token, although the company’s founder is hopeful that this strategy will mirror the success of Bitfinex. Bitfinex, a cryptocurrency exchange platform, successfully used debt management tokens to recover 119,756 bitcoins eleven months after they were compromised in a hacking incident.
However, Patricia recognizes the need to go above and beyond to win over a rightfully cautious public. To achieve this, the company must prioritize transparency, share more information about its smart contract, and carefully consider its announcements before sharing them with the broader audience.
As Patricia forges ahead with its pioneering strategy, the cryptocurrency world will be watching closely, eager to see if the exchange can rebuild trust and transparency in an industry often plagued by uncertainty.
