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Freeway withdrawals: FWT token price collapses as crypto yield platform stops buybacks, wipes team member profiles

By Darius McQuaid


Updated

A view of Bitcoin physical token and US dollar
The Freeway token has fallen since the suspension of services – Photo: Getty Images

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.

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.  

ETH/USD

3,426.09 Price
-0.540% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.63 Price
+6.500% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.12 Price
-2.010% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

64,735.25 Price
-0.070% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

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.

BTC to USD 

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”.

Markets in this article

BTC/USD
Bitcoin / USD
64735.25 USD
-42.35 -0.070%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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