Crypto Firm Freeway Updates Community, Says Trading Strategy ‘Failed’ and ‘Caused a Substantial Loss’

October 27, 2022 Bitcoin.com

Freeway’s withdrawal halt blamed on ‘failed’ trading strategy

October 26, 2022 Coin Telegraph

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The crypto yield platform said one of its trading strategies "appears to have failed" forcing the firm halt services earlier this week.

Crypto staking platform Freeway pointed at the failure of one of its trading strategies, along with market conditions as the leading reason for halting user withdrawals earlier this week.

The crypto yield platform on Oct. 23 announced it was halting various transactions relating to its high-yield “Supercharger” product, citing “unprecedented volatility” at the time, without giving any more details at the time, which saw its token price plummet.

In a 22-part Twitter thread on Oct. 25, Freeway shed more light on the situation, revealing that it was “one of Freeway’s trading strategies” that “appears to have failed” and has “dramatically impacted Freeway’s portfolio” and caused a “substantial loss” to its investors.

Freeway explained that an unprecedented rally of the United States dollar, along with crypto volatility led to the failure of the trading strategy.

“The trading strategy was executed as it was programmed, but the market volatility caused a spike in margin utilization leading to the loss,” it explained.

The platform offers users up to 43% annual yield wards using its “Superchargers” products. Users can deposit fiat currencies and crypto, which are placed in regulated brokerage accounts that are leveraged for returns.

However, the firm said earlier this week it would be halting buys and deposits and won’t be buying back Superchargers until its new strategies are implemented.

In the new post, Freeway said it would be enacting a recovery plan to improve and secure its remaining funds.

The plan would involve bringing in “new expertise” to improve the management of its remaining funds, alternative diversification opportunities for investors, deploying a new product with “impressive projected profitability” (although details have not yet been announced), along with a new “Earn and Protect” feature that gives greater user protection.

The platform has also confirmed that they had moved out of the “loss-producing” strategy.

“In order for us to resume Supercharger buy-backs we need to be in a position to execute safely. We will therefore need to see significant inroads into the losses before that can happen, and that will take time.”

News of Freeway's service halt caused its FWT token to plummet 81% to approximately $0.00134. The token is currently priced at $0.00152, according to CoinGecko.

A Crypto Rewards Platform That Promised 40% APY Halts Withdrawals, Citing ‘Market Fluctuations’

October 24, 2022 Bitcoin.com

Crypto platform Freeway halts services citing ‘unprecedented volatility’

October 24, 2022 Coin Telegraph

Coin Telegraph

Cryptocurrency platform Freeway has halted transactions and services related to their “Supercharger” high-yield product until further notice.

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.

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.

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