Patricia, a Nigerian cryptocurrency exchange, has introduced a unique debt management strategy. Fejiro Hanu, the CEO of Patricia, confirmed that customers now convert their owed funds into Patricia shares. This initiative is part of the company’s fundraising and debt reorganization plan. Moreover, Hanu revealed that a Nigerian Securities and Exchange Commission (SEC)-licensed third party would manage these shares to ensure complete transparency.
User reactions mixed, CEO clarifies misconceptions
However, not everyone is pleased with this development. A video circulating on X, formerly known as Twitter, shows agitated users demanding their money at a building associated with Patricia.
Hanu was quick to clarify that the video content is misleading. He stated that Patricia operates on a fully remote basis, and the office shown in the video is actually an innovation hub. This hub, announced in 2022, offers free working spaces to developers and crypto enthusiasts.
Hanu also addressed the issue of fund withdrawal. He mentioned that the Patricia app is in the final stages of beta testing. Invites have been sent to customers to experience the new app before its public launch. Additionally, some customers participating in the testing process are having their Patricia Token (PUTX) redeemed. This token serves as the exchange’s internal debt management tool.
Upcoming app relaunch and fund redemption plans
In anticipation of the firm’s upcoming app relaunch, Patricia is allowing its users to transform their debt tokens into convertible notes at a favorable discount. Hanu also stated that Patricia users have been notified of plans to redeem their balances in batches once the firm reopens. This comes after the company disclosed a security breach in May 2023, which led to fund losses. Despite this, Hanu claims that customer funds remained unaffected, although users have faced difficulties accessing them since April.
The debt-to-share conversion strategy is a significant move for Patricia, especially as it prepares for its fundraising initiative. It also serves as a unique approach to debt management for the crypto exchange. Significantly, the strategy aims to offer a win-win solution for both the company and its users, although it has received mixed reactions so far.
