Cryptocurrency investment platform Freeway has put a hold on withdrawal on its platform joining a handful of other firms. Additionally, the firm has also applied the brake to services related to its “Supercharger” high-yield product until further notice.
Freeway cited “unprecedented volatility” in the foreign exchange and cryptocurrency markets in “recent times.” as the reason behind the halt.
Therefore, Freeway is now better focused on ensuring the sustainability of its business and plans on diversifying its asset base. Intentionally, the firm seeks to manage its exposure to volatility and fluctuations which may attempt to occur in the future.
Freeway prides itself as a firm that incorporates the best of traditional finance with the best of decentralized finance (DeFi). Although Freeway is a centralized platform. As per a website post, the Freeway ‘Subchargers’ products offer up to 43% annual returns yield.
“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,” Freeway announced.
Price Dip Follows Freeway Halt Decision
The news of its withdrawal suspension has triggered a drop in the value of its token, the Freeway Token (FWT). In the last 24 hours, the value of FWT has dropped by almost 80%, now trading at $0.00151884. The users do not have an inkling of what is happening but they have taken to social media to lay their complaints.
Whether Freeway will follow the part of other crypto platforms who suspended withdrawal and ended up folding up permanently, is the question on the minds of many crypto players. This was the case of Berlin blockchain financial service provider Nuri who filed for insolvency in August.
Nuri blamed the sell-off and the bearish crypto market as well as its connection to bankrupt crypto lender Celsius network. After its court insolvency filing, Nuri’s search for a venture capital acquirer proved abortive. Last week, Kristina Walcker-Mayer, the Chief Executive Officer of the firm announced that the firm will be going into permanent closure.
All of Nuri’s trading is bound to finally stop in November. In effect, all customers have until 18th December to withdraw all their funds.