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Why Crypto Exchange Freeway Pauses Transactions Services
The cryptocurrency exchange Freeway has announced a temporary pause with regards to transactions and services on the platform as per a Twitter post.
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
The exchange justified the decision citing an incredible volatility in the foreign exchange and crypto market. It maintains that the decision will hold until further notice, especially as regards supercharger high-yield products.
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 information revealed on Oct. 23 states that the exchange will be pausing buys, deposits, and will also not entertain any form of supercharge simulations until the necessary protocols and strategies are in place.
Usually, Freeway protocol offers up to 43% annual yield rewards to users willing to stake. Under this arrangement, users deposit fiat currencies or crypto which will be placed in statutory brokerage accounts which will then be leveraged for ROI.
Prior to now, the centralized crypto exchange Freeway has advanced itself as a unique platform offering both traditional finance and services in the decentralized finance (DeFi).
Following the incessant pause of its services, Freeway has not disclosed any strategic steps or moves it will embark upon. Although the exchange reveals that it is ready and committed to diversify its asset base.
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.
— Freeway (@FreewayFi) October 23, 2022
The exchange maintains that it will notify the general public when it will recommence full Supercharger simulation purchases and restoration of buys and deposits on Freeway platform.
Meanwhile, the native token of Freeway (FWT) has dropped more than 76% in the last 24 hours following the disclosure to halt services. At the time of filing this report, it trades at $0.0014 according to CoinMarketCap.
Reign of Crypto Platforms Closure
It is no longer news that temporary or permanent closure of cryptocurrency exchanges are witnessed during bear markets. It would be recalled that 97% of cryptocurrency exchanges in South Korea were once on the verge of bankruptcy and closure.
In the same vein, Ukrainian cryptocurrency exchange Liqui indiscriminately shutdown on Jan. 28, 2019 during the previous bear market cycle.
While Freeway has not announced permanent closure, Twitter personality FatManTerra discloses that the administrator of the Freeway website is in the process of deleting team names from the page.
Never forget these scammers (although I'll be surprised if at least one of them doesn't get plastic surgery) pic.twitter.com/Y0Ene9LBG9
— FatMan (@FatManTerra) October 23, 2022
