Freeway Crypto Staking Platform Halts Some Services Citing Market Volatility
Freeway, a crypto staking platform has brought some of its services to a temporary halt citing market fluctuations. In a bid to keep its business afloat, Freeway has stopped buy and withdrawal services on its platform. The company is working on drafting newer strategies that could make its operations more resistant to the volatile nature of crypto assets. In recent months, the crypto market did see more losses than gains. Around September, the total valuation of the global crypto market slid below the trillion-dollar mark. As of Monday, October 24, the crypto market cap stands at $931 billion (roughly Rs. 76,97,634 crore).
For the time being, Freeway is also freezing its Supercharger feature. As per its website, Freeway’s ‘Superchargers’ product can rope-in up to 43 percent annual yield rewards. To avail this, users have to deposit fiat and/or cryptocurrencies that Freeway places in regulated brokerage accounts that are leveraged for returns.
Freeway posted an official announcement around the development on Twitter over the weekend.
“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,” the announcement read.
While this process is ongoing, Freeway will be allocating capital to its underlying portfolio and this means for a temporary time we will not be buying Supercharger simulations until our new strategies are implemented.
— Freeway (@FreewayFi) October 23, 2022
The platform will be notifying users when it is ready to recommence its halted services.
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 (@FreewayFi) October 23, 2022
Meanwhile, the Freeway token (FWT) has witnessed a drop of over 75 percent in the last 24 hours, data by Coingecko shows.
Freeway is not the only crypto platform that has resorted to such measures in order to power through the crypto market slowdown.
Several crypto firms have faced similarly challenging situations this year. Investors in the crypto sector have pulled out, owing to recession-like economic climate and low-risk appetite.
Crypto lenders Celsius Network, BlockFi, Vauld, and Voyager are among those platform that went from pausing withdrawals to declaring bankruptcy amid the crypto market volatility.
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