Crypto platform Freeway halts services citing ‘unprecedented volatility’

by · October 23, 2022

Crypto platform Freeway has suspended some of its services, citing “unprecedented volatility” in the currency and cryptocurrency markets in “recent times.”

In a post on October 23rd, the platform announced that it is halting purchases, deposits and “will not purchase Supercharger simulations until our new strategies are implemented.”

According to the Freeway website, their “Superchargers” product can offer up to 43% annual returns. Users can deposit fiat currencies and crypto, which are placed in regulated brokerage accounts that are leveraged for returns.

A centralized platform, Freeway advertises itself as a combination of the best of traditional finance with the best of decentralized finance (DeFi).

Freeway has not provided any specific details about what its new strategies might entail, but said in the announcement that there are plans to “diversify its asset base” and “manage exposure to future market swings and volatility.”

What exactly this might mean for the platform and its users is unclear, but the post ends by promising to provide updates soon.

“We will notify you when we are ready to resume partial Supercharger simulation purchases (buybacks) and then again as we may resume full Supercharger simulation purchases as well as on-platform Freeway Token (FWT) deposits and purchases.”

Cointelegraph contacted Freeway for comment on the status of the withdrawals and for further clarification on the suspension of services, but was not provided with any new information.

The news of halting some services has seen their token Freeway (FWT) drop more than 75% in the last 24 hours, according to Coingecko.

In the wake of other high-profile issues with crypto firms and exchanges, users have expressed their concerns on social media and in the Freeway Telegram group.

Whether withdrawals will be honored and whether Freeway will follow other high-profile crypto platforms in permanent shutdown are the two most prominent.

Related: Maple Finance CEO: Separating risk from lending saved DeFi from market crash

So far, a lone Freeway moderator/admin has advised users to fill out a support ticket and reported that they can’t “really say anything more until the next official communication.”

“The entire team is working very hard with the intention of resuming partial Supercharger simulation purchases (buybacks) and then again being able to resume full Supercharger simulation purchases,” added the moderator.