Following the recent indiscriminate halt of withdrawal and transactions on Freeway crypto exchange, the crypto staking platform has disclosed that the decision was taken due to the failure of one of its crypto trading strategies, as per a post.
https://twitter.com/FreewayFi/status/1584989889615265792?t=l4J7f7Tuaxw9AM3IDVIT4w&s=19
The crypto yield platform maintains that the situation was also aggravated by the market conditions, thereby necessitating the sudden pause of withdrawals earlier this week.
https://twitter.com/FreewayFi/status/1584989892941316096?t=AbwGxdVwr-E0n7uPZOI5Ag&s=19
Recall that On Oct. 23, the platform announced a temporary shutdown of withdrawal and transactions with no clear-cut reasons.
The decision was later justified by citing an incredible volatility in the foreign exchange and crypto market, by maintaining that the decision will hold until further notice, especially as regards supercharger high-yield products.
In the latest explanation provided by the platform, the staking hub reveals that the failure of the Freeway’s trading strategies greatly impacted Freeway’s portfolio and has led to a huge loss, especially to its investors.
While the platform holds to the fact that the trading strategy was carried out in line with how it was programmed, it was argued that market volatility turned on margin utilization, leading to a huge loss.
It is noteworthy that the platform offers up to 43% annual yield via its Superchargers products. In this regard, users can deposit either fiat currencies or crypto into designated brokerage accounts that are leveraged for returns.
Effects of Freeway Sudden Closure
The indiscriminate closure of Freeway exchange has impacted negatively on its native token. The native token of Freeway (FWT) has dropped over 80% since the announcement was made. It currently trades at $0.0014 according to CoinMarketCap.
Meanwhile, the decision has also generated skepticism and partial loss of confidence in the platform. A Twitter influencer FatManTerra discloses that the administrator of the Freeway website is in the process of deleting team names from the page.
Meanwhile, the exchange maintains that it will soon enact a recovery plan with a view to improving and securing its outstanding funds.
https://twitter.com/FreewayFi/status/1584989910175748097?t=muc5G9oxIrA_-nxtTFf3SQ&s=19
The exchange maintains that the new plan will revolve around improving the management of its remaining fund, alternative diversification opportunities for investors, among others.
