Freeway, a cryptocurrency investing platform, went offline on Sunday, causing the value of its native cryptocurrency to plummet. The token’s price has dropped by more than 80% in the last 24 hours, with Telegram users unsure of the exact reasons for this. At press time, the Freeway token was trading at $0.00110245 on CoinGecko.
According to a platform statement, it has decided to diversify the types of assets it holds. The action is intended to “control exposure to future market changes and volatility, assuring the Freeway ecosystem’s long-term viability and profitability,” according to the statement.
Annual rewards on so-called “Superchargers”
Freeway advertises up to 43% annual incentives on purported “Superchargers” that accept both fiat and cryptocurrency payments. Users put money into their accounts and buy Superchargers, which provide yield. The proceeds from the sale of these products can then be received. However, Freeway stated in its announcement that “until our new tactics are put into practice, we will not be purchasing Supercharger simulators.”
The firm stated,
“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.”
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
According to crypto-sleuth “Fatman,” the team’s names have also been deleted from their website in “another $100 million rug.” In fact, he had also referred to the website as a Ponzi scheme and recommended users withdraw their funds on 22 October, before the Freeway announcement.
Native token down significantly
Over the last 24 hours or so, the platform’s native coin, FWT, has fallen by more than 80%. Before the service interruption, the price of FWT was approximately $0.007. On Monday morning, it fell to $0.001 and hasn’t yet recovered from that low. It fell by about 87%. From its all-time high of $0.031 in May 2021, FWT is currently mired 96% below. Its market capitalization is now only around $8.5 million.
Co-CEO Graham Doggart seemed to be unreachable at press time, with no response yet from him.
According to one user, “I can’t sell my supercharger and receive my monies bc FREEWAY is “temporarily” not purchasing back the superchargers they sold me.” Needless to say, this sparked a conversation on the business’s Telegram channel.