Crypto yield platform Freeway halts withdrawals, FWT token falls

Key Takeaways

  • Freeway stated that it wouldn’t be buying back Supercharger simulations until its new strategies are implemented.
  • The firm cited “unprecedented volatility” in the forex and crypto market as the reason.
  • The platform announced its plans to “diversify its asset base” and “manage exposure to future market fluctuations and volatility.”

On October 23, Crypto staking platform Freeway halted withdrawals, buys, and deposits. The firm cited “unprecedented volatility” in the forex and crypto market as the reason behind the move.

“Freeway has therefore decided to diversify its asset base to manage exposure to future market fluctuations and volatility, ensuring the long-term sustainability and profitability of the Freeway Ecosystem.”

According to the official announcement, Freeway won’t be buying Supercharger simulations until their new strategies are implemented. The announcement, however, doesn’t dwell deep into what Freeway’s new strategies may be. The platform has stated that it plans to “diversify its asset base” and “manage exposure to future market fluctuations and volatility.”

As per the official website, “Freeway Superchargers are simulations denominated in popular crypto and fiat currencies. They are purposely designed to give you rewards for every day that you hold them.”  The “Superchargers” product can offer up to 43% annual yield rewards.

Soon after the announcement, discussions, and debates around what the latest development means for people holding supercharges erupted on Freeway’s Telegram channel.

Responding to customer queries, Freeway stated, “We will notify you when we are ready to recommence partial Supercharger simulation purchases (buy-backs) and then again as we can recommence full Supercharger simulation purchases as well as on-platform Freeway Token (FWT) Deposits and Buys”.

Following the news of freezing withdrawals, Freeway’s native Token-FWT drop more than 75% in the last 24 hours.FWT is currently trading at USD 0.001637.

Crypto Yield Platform Freeway Halts Withdrawals, Fwt Token Falls
Source:Coingecko

Before the official announcement was made, Crypto sleuth Fatman took to Twitter urging everyone to withdraw their funds from Freeway and accused the platform of operating a ‘Ponzi scheme.’ Following the Freeway announcement ‘Fatman’ revealed that the names of the team have also been wiped from their website in what he said could just be “another $100 million rug.”

With this latest development, Freeway joins a growing list of crypto platforms such as Voyager Digital, Celsius Network LLC, and Babel Finance, among others, beaten by unfavorable market conditions and forced to suspend trading and withdrawals. 

Saniya Raahath
Saniya Raahath

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