The broader crypto space is in skepticism once again following the steep decline of FWT token—native asset or crypto staking platform Freeway. Many crypto users outspoken on Twitter about the issue and more or less considered it as another instance of rug pull. However the platform has been consistently updating and informing its users.
On 22nd October 2022, FWT token started falling which could be treated as a routine drop if it would not continue to decline heavily till the next day. The very next day, Freeway announced the halting of withdrawal operations on its platform especially related to its high-yielding product named Superchargers.
The company mentioned the failure of their one of the implemented trading strategies along with the sensitive market conditions as the potential reason behind the critical situation with the platform. One such condition Freeway cited was “unprecedented volatility in Foreign Exchanges and Cryptocurrency markets”.
Freeway did not disclose more details over the issue but ensured to notify the users when they would be recommencing the buying back of Supercharger assets and depositing and buying of FWT tokens.
Freeway Appears Again, With Details This Time!
The crypto yielding platform showed up again on 25th October with a 22 thread message on Twitter. In this thread, Freeway explained the whole instance of FWT token price decline and the potential reasons behind it in detail.
Freeway stated the failure of their trading strategy was due to two main reasons—unprecedented rally of US dollar and volatility in crypto market. Further it noted that the strategy was working fine as it was programmed but these unmanageable factors like volatility resulted in loss to the platform.
The platform highlighted the loss made to the trading portfolio of Freeway while assuring the security remaining funds. The funds were “moved out of the loss-producing strategy.”
Freeway proposed a new recovery plan to be implemented including bringing of new experts onboard who will be managing the remaining funds. In addition to this, the platform mentioned four recovery plans ahead and also showcased inability to tell the exact time for the whole system to work the same again. It ended up the thread with the assurance to connect to the community for more updates and developments.
Crypto Community Not Believing Freeway’s laims
On one hand where Freeway is trying to showcase a “not much to worry about” attitude, the critics on the other hand are raising questions and looking at the project with skepticism. Prominent crypto researcher Fatman Terra went on to Twitter on 22nd October and suggested people to withdraw their funds from the project.
The crypto researcher also expects that the project is going to fall sooner or later. In response to Fatman, there were many crypto users who were citing Freeway as another failed project as Terra (LUNA) network. Well only time will tell whether suspicion turns right or the project recovers to where it was, again.
Source: https://www.thecoinrepublic.com/2022/10/26/freeways-failed-trading-strategy-becomes-reason-for-fwt-freefall-not-everyone-agrees/