Crypto platform Freeway halts services citing ‘unprecedented volatility’

Crypto platform Freeway has halted some of its services, citing “unprecedented volatility” in the foreign exchange and cryptocurrency markets in “recent times.”

In an Oct. 23 post, the platform announced they are halting buys, deposits and will “not be buying Supercharger simulations until our new strategies are implemented.”

According to the Freeway website, their “Superchargers” product can offer up to 43% annual yield rewards. Users can deposit fiat currencies and crypto, which are placed in regulated brokerage accounts which are leveraged for returns.

A centralized platform, Freeway advertises itself as combining the best of traditional finance with the best of decentralized finance (DeFi). 

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

Freeway has not provided any specific details about what its new strategies might involve, but said in the announcement there are plans to “diversify its asset base” and “manage exposure to future market fluctuations and volatility.”

What exactly this could mean for the platform and its users is unclear, but the post closes by promising to provide updates soon.

“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.”

Cointelegraph contacted Freeway for comment on the status of its withdrawals and for further clarification about the halt of services but was not given any new information. 

The news about halting some services has seen their token Freeway (FWT) drop more than 75% in the last 24 hours, according to Coingecko.

In the wake of other high-profile issues with crypto firms and exchanges, users have been expressing their concerns on social media and in the Freeway Telegram group.

Whether withdrawals will be honored and if Freeway will follow other high-profile crypto platforms in permanent closure are the two most prominent.

Related: Maple Finance CEO: Separating risk from lending saved DeFi from market crash

So far a lone Freeway moderator/admin has been advising users to fill out a support ticket and reported they can’t “really say anything more until the next official communications are forthcoming.”

“The whole team are working very hard with the intention to recommence partial Supercharger simulation purchases (buy-backs) and then to again be able to recommence full Supercharger simulation purchases,” the moderator added.