Crypto Platform Freeway Halts Withdrawal: Details
- Small cap crypto staking platform Freeway, which promised returns upto 43%, has announced withdrawal halt and the FWT token has fallen close to 72% in the last 24 hours.
- “Freeway will be allocating capital to its underlying portfolio and this means for a temporary time we will not be buying Supercharger simulations until our new strategies are implemented,” read an announcement.
- FatManTerra and other crypto figures point out that the platform was running a Ponzi scheme and that users have been rugged.
Rapidly rising crypto staking platform Freeway has decided to halt withdrawals and stated that the current volatility of the crypto and forex markets has affected its operations. This created selling pressure for the utility token of the platform, the Freeway Token (FWT), which crashed violently following the announcement.
According to the data, the FWT token is currently more than 70% down in the last 24 hours and it seems that there is no potential of an upside moment now that the staking platform has finally closed its withdrawals. As per the official announcement, the platform, which promises close to 43% API to its depositors, has shut its withdrawals due to a continuously bearish market.
“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. This will allow Freeway to maintain the highest level of Supercharger simulation rewards,”
said the official announcement.
Additionally, the firm which had a market cap of over $60 million pre-crash and over $10 million at the time of writing, has decided to allocate capital “to its underlying portfolio and this means for a temporary time we will not be buying Supercharger simulations until our new strategies are implemented,” read the announcement.
“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,”
added the announcement.
There are significant signs of the creators being at play as according to Beosin, the firm has deleted the team list and implemented a rugpull involving an amount exceeding $100 million, stopping all the platform withdrawals, and crashing its token. A similar statement also came from another Twitter analyst FatManTerra who confirmed that looking at the current scenario, it seems that Freeway rug-pulled and there is zero chance that they are coming back to repay the users.
Interestingly, FatManTerra warned about the collapse of the platform on Saturday stating that it is possible that the staking platform would collapse in the coming months. He warned the users that Freeway was running a Ponzi scheme and these was zero truth in the website.
“If anyone has funds in crypto yield platform Freeway, I would suggest withdrawing right away. I believe they are operating a Ponzi scheme. In my opinion, it’s likely that Freeway will collapse within the next few months and that all depositors will lose everything,”
FatManTerra said.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
