Freeway withdrawals: FWT token price collapses as crypto yield platform stops buybacks, wipes team member profiles
Updated
Crypto-yield platform Freeway has halted its services as the crypto bear market claims another victim.
On 23 October, the platform announced via Twitter that due to “unprecedented volatility in foreign exchange and cryptocurrency markets in recent times” it has temporarily paused buybacks and withdrawals.
Freeway refers to buybacks as “partial Supercharger simulation purchases”. The platform stated it has decided “to diversify its asset base to manage exposure to future market fluctuations and volatility” to “ensure the long-term sustainability and profitability of the Freeway economy”.
The company said that this would allow it to “maintain the highest level of Supercharger simulation rewards”.
Freeway added that it would notify customers when they can start buybacks again but will not be commenting further than the Twitter thread already published.
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
FWT plummets
The Freeway Token (FWT) has seen a drop of 79% from 22 October, the day before this announcement was made. The FWT went from $0.007405 to $0.001535 on 25 October, according to CoinMarketCap.
The FWT is described as “a pure utility token for the expanding Freeway universe”.
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Casualties of the crypto bear market
From June to August 2022 a number of crypto firms filed for bankruptcy, including Celsius Network, a decentralised finance (DeFi) platform, Three Arrows Capital (3AC), the cryptocurrency hedge fund, and Voyager Digital, the cryptocurrency lender.
Voyager has now received court approval to sell $1.42bn (£1.25bn) of its assets to FTX, the cryptocurrency derivatives exchange.
Following the downturn in the crypto market, Sam Bankman-Fried, CEO of FTX in September, said he thinks crypto is “coming back” after the current bear market.
The FTX CEO made his comments in an interview with Bloomberg UK.
Bankman-Fried said much of what is happening in the crypto market is linked to the macroeconomic environment. “If we see the market crash again, we will see crypto crash along with it,” he explained.
However, the same can be said for a recovery in the markets, which he said would lead to a crypto recovery.
The FTX CEO said that if the market saw bitcoin (BTC) drop even further to $10,000 (£8,835), “I think you would see another round of pain for the industry that would potentially be more of a medium- to long-term problem”. Bitcoin is currently priced at $19,285.
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A gloomy prediction
Twitter account FatMan, who is a crypto and finance researcher with more than 100,000 followers, predicted that Freeway would “collapse within the next few months” and that he is “certain” of this.
FatMan also revealed that Freeway has “wiped the names of all team members from their website”.
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