Freeway Token Value Drops as it Halts Withdrawal and Trading

Cryptocurrency trading platform Freeway has applied the brakes to its trading services and this in turn is believed to have caused the value of its native token Freeway token (FWT) to plummet. At the time of this writing, FWT was trading at $0.00157937 which is around a 71% dip within the last 24 hours, according to CoinGecko.  

Prior to this crash, the firm had a market cap which was within $70 million, after its announcement on Twitter, the market cap dropped to about $10 million. The firm attributed its decision to halt withdrawal to “unprecedented volatility” in the foreign exchange and cryptocurrency markets in “recent times.” 

Importantly, Freeway offers its ‘Superchargers’ high-yield product at 43% annual returns while accepting deposits in both fiat and cryptocurrencies. For now, services related to such ‘Superchargers’ will be suspended.

“While this process is ongoing, 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,” Freeway tweeted.

Freeway Halt Decision Suggest a Rugpull

Freeway claims to be containing the situation at hand by diversifying its asset base to manage exposure to future market fluctuations and volatility ensuring the long-term sustainability and profitability of the Freeway Ecosystem. Nevertheless, it has promised to update users on the process progress.

“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 post stated.

Although many think that this sudden move signals a rug pull in the cryptosphere. Currently, there are suggestions that the Freeway administrator is deleting team names from its page. Users are unsure of the situation and have taken to social media, especially the Telegram channel of the trading platform to voice their confusion. 

“I can’t liquidate my supercharger and get my funds bc FREEWAY is ‘temporarily’ not buying back the superchargers they sold me.” one of the users posted on the Telegram channel.

Freeway is one of the centralized platforms that boast of being able to combine the beast of traditional finance with the best of decentralized finance (DeFi).