Subscribe to our newsletter!
Crypto investment startup Freeway announced that it has suspended its services on its platform and stopped buying back the investors’ Supercharger Simulations, the firm’s financial product that offers users up to a 43% yield.
“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,” the platform said in a statement.
According to Freeway, its decision is influenced by the “unprecedented” volatility in foreign exchange and crypto markets, but no other information was provided on how the firm will diversify its asset base.
Earlier this month, Freeway CEO Sadie Hutton said that “a looming global recession and high levels of inflation had dogged markets, but Freeway stood poised to end 2022 with a bang,” boasting that his firm gained a net positive growth of $1.8 million in users’ Supercharges in Q3 of 2022.
Typically, investors buy Supercharges as Freeway offers a big profit once the investors have decided to sell back the Supercharges to the platform in the future. This advertisement has led Freeway to collect about $161 million in Superchargers within its ecosystem
The firm’s decision also led its native token, FTW, to drop. As of writing, FTW’s value is at $0.001643 (~₱ 0.096), much lower than its all-time high price of $0.0242 (~₱ 1.42) last May.
This is not the first time that a centralized platform has stopped operations. Last June, marketplace platform Celsius also decided to suspend its operations, specifically in withdrawals. This is after the crash of Terra and Luna and the continuous downtrend of Bitcoin.
Meanwhile, in a report by Nomics, more than 12,000 crypto projects, platforms, and tokens have stopped trading this year.
This is in line with the experts’ analysis that even good projects are struggling to sustain themselves in the current crypto winter. The bear market started earlier this year when even the largest cryptocurrencies crashed, and the wealth of crypto billionaires significantly went down. (Read more: Bear Market Destroys Crypto Billionaires Wealth)
Along with crypto, the non-fungible tokens (NFT) space have also been affected by the crypto winter where it crashed by 97% in just 9 months. The value of the market went down from $17 billion in January 2022 to $466 million in September. (Read more: NFT Market Volume Drops 97 Percent From 2022 Highs)
This article is published on BitPinas: Crypto Investment Firm Freeway Stops Operations, Token Tanks 75%
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.