Crypto platform Freeway halts services, its FWT token dips by 75%

Crypto investment platform Freeway halted services over the weekend, resulting in its FWT token losing 75% of its value.

Crypto investment platform Freeway told its users on Sunday that it has halted its services. This latest cryptocurrency news saw its native FWT token lose more than 70% of its value within the space of 24 hours.

Freeway is a platform that claims to offer up to 43% annual rewards on so-called “Superchargers” denominated in crypto and a few fiat currencies.

The platform allows users to deposit funds and buy Superchargers, generating yield in the process. The yield can be sold back, and the funds returned to the user. However, Freeway said in a statement that it would not be purchasing Supercharger simulations until its new strategies are implemented.

The firm added that;

“As all of you will be aware, there has been unprecedented volatility in Foreign Exchange and Cryptocurrency markets in recent times. 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.”

Freeway’s Telegram group has been buzzing with messages since the firm made the announcement yesterday. A member of the group complained that they couldn’t liquidate their Supercharge because Freeway had temporarily stopped buying the superchargers they sold to them. The platform replied that;

“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.”

Data obtained from Coinmarketcap shows that FWT has lost 75% of its value over the last 24 hours. At press time, FWT is trading at $0.001529, with a market cap of just above $15 million.

It is still unclear if Freeway is a scam platform. However, Chainalysis’ midyear report revealed that cryptocurrency scams are down while hacks and stolen funds in the industry have gone up.