Freeway, a cryptocurrency platform, blocked some of its services due to skyrocketing instability in the cryptocurrency market, it said in a statement on Sunday.
The British platform issued a statement on 23 October, where it said “unprecedented volatility in Foreign Exchange and Cryptocurrency Markets in recent times” had led the firm to block some of its services.
It added the company would diversify its assets to “manage exposure to future market fluctuations and volatility” to preserve the “sustainability and profitability of the Freeway Ecosystem” in the long-term.
Due to the measures, Freeway suspended purchases of Supercharger simulations until after fully implementing its strategies, the statement continued.
It continued, stating, “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’s website notes that Superchargers offer up to 43 percent annual yields, allowing users to deposit funds in regulated brokerage accounts with daily rewards, without buy-in or exit fees.
Cryptocurrencies with 43 percent Supercharger rewards include Bitcoin, Ethereum, USD, EURO, GBP, CAD, and AUD. The firm also offers 21.5 percent annual rewards on Binance, Cardano, Polkadot, and Gold.
As of 11 October, the company has issued $161 million in Supercharger simulations, totalling $37 million in annual rewards each year.
News of the halt sent the platform’s native cryptocurrency FWT nosediving roughly 74 percent, leading to anger and frustration over the crash and lack of access to personal accounts, according to Gizmodo reports.
Several other cryptocurrency platforms have faced insolvency in recent years, with crypto lending platform Celsius filing for bankruptcy, forcing the company to pay nearly $3.76 million in vendor claims and liens, reports found.
Terra/Luna also crashed to near zero, triggering further instability in the crypto markets and forcing Luna Market, a cryptocurrency, non-fungible token (NFT), and metaverse platform to rebrand as Insomnia Labs.
