Nigeria’s crypto powerhouse, Patricia, is on a mission to regain the trust of its user base with a bold financial move. After acknowledging a staggering $2 million loss in customer assets due to a cyberattack last year, the company is determined to use fresh capital to make amends. But the road to redemption seems fraught with skepticism.
In a recent virtual meeting led by Hanu Fejiro, the company’s CEO, some details about the new investment were hinted at but shrouded in secrecy.
Intriguingly, Hanu Fejiro also revealed that Patricia Plus, their flagship app, is currently undergoing beta testing and set for a grand relaunch. The previous release in April triggered a financial frenzy as users rushed to withdraw their funds, prompting Patricia to freeze withdrawals, further eroding trust among an already wary clientele.
Adding to the controversy, Patricia converted the remaining customer assets into Patricia Tokens (PTK), labeled as debt management tokens. This sudden transformation ignited outrage, forcing the company to issue a comprehensive explanation regarding these tokens.
Despite Patricia’s promise of tying its repayment plan to platform profitability, a clear timeline for financial stability is conspicuously absent. The success of the repayment plan heavily relies on the infusion of new capital, according to Patricia’s management.
However, these debt management tokens have failed to inspire confidence among the company’s users. Customers are demanding greater transparency, with some contemplating legal action. Patricia’s delayed disclosure of the cyber breach has only deepened the atmosphere of mistrust, making it challenging to win back full customer support.
Drawing a parallel with the global crypto platform Bitfinex, Patricia seems to be adopting a similar strategy with its debt tokens. Bitfinex, after losing approximately $72 million to hackers in 2016, also offered debt tokens as a form of liability compensation. Yet, the crucial difference lies in the widespread mistrust and skepticism surrounding Patricia, making this approach a risky venture.
Importantly, the discord among Patricia’s customers goes beyond mere dissatisfaction. In a virtual meeting, an anonymous user suggested staging a protest, while others are contemplating legal action.
The company finds itself at a crossroads, grappling with a trust deficit that cannot be bridged by funding alone. As Patricia gears up for the relaunch of Patricia Plus and boasts about its new financial backing, the burden rests squarely on its shoulders to prove its commitment to making amends. While the recent infusion of funds may be a step in the right direction, whether Patricia can rebuild bridges with its cautious customer base remains a looming question mark.