Freeway Token Plunges 75% As The Crypto Yield Platform Freezes Withdrawals
After suspending withdrawals (providing a vague explanation), its FWT token losing nearly 80% of its value.
Crypto investment platform Freeway has halted withdrawals and temporarily suspended operations in response to “unprecedented volatility” in forex and crypto markets, causing a sharp drop in the value of its native token FWT.
The Seychelles-registered platform tweeted on Sunday it has 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”. Consequentially, the platform would not be buying back users’ Supercharger Simulations – financial products that offer up to 43% annual rewards – until its new strategies are implemented.
As all of you will be aware, there has been unprecedented volatility in Foreign Exchange and Cryptocurrency markets in recent times. pic.twitter.com/9aHsWbm1So— Freeway (@FreewayFi) October 23, 2022
The move left users unable to sell their Superchargers back to the platform. Freeway is yet to give a timeline for when it might reinstate services. “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,” the company added.
According to Coinmarketcap, FWT has lost more than 75% of its value within the space of 24 hours following its decision to suspend its platform. The live Freeway Token price today is $0,001235, losing over 77% in the last 24 hours.
Freeway has received criticism for promising unrealistically high returns, as the company does not explain clearly how these rewards are generated
claims it has $160 million in total value locked via a figure published on its website.