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HomeLaw & PoliticsFreeway Reveals Reasons For The Platform Withdrawal Halt

Freeway Reveals Reasons For The Platform Withdrawal Halt

Freeway, the crypto staking platform, halted customer withdrawals earlier this week, citing the failure of one of its trading strategies as well as market circumstances as the primary causes.

The crypto yield platform made an announcement on October 23 that it was stopping various transactions relating to its high-yield “Supercharger” product, citing “unprecedented volatility” at the time. But at the time, the platform didn’t give any more information, which caused the price of its token to drop a lot.

In a Twitter thread with 22 parts published on October 25, Freeway provided additional insight into the situation. The company revealed that “one of Freeway’s trading strategies” “appears to have failed,” which has “dramatically impacted Freeway’s portfolio,” and has resulted in a “substantial loss” for its investors. 

Freeway claimed that the failure of the trading technique was due to an exceptional surge in the value of the United States dollar, in addition to the volatility of cryptocurrencies. Users of the site have access to items known as “Superchargers,” which may provide them with yearly production increases of up to 43%. Users can make deposits in both fiat currencies and cryptocurrencies. These deposits are then kept in regulated brokerage accounts and used to make money.

Nevertheless, the company said earlier this week that it would be pausing purchases and deposits and that it would not be purchasing back Superchargers until its new initiatives were put into effect.

Freeway said in its latest post that it would be putting a recovery strategy into action in order to strengthen and protect the cash it still has.

The plan would involve bringing in “new expertise” to improve the management of its remaining funds; alternative diversification opportunities for investors, the deployment of a new product with “impressive projected profitability.”

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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