The famous staking platform, Freeway, has just halted its withdrawal services with no prior warning. After halting their staking withdrawal services, Freeway made a statement stating that the current market volatility is the reason behind their decision. Nevertheless, the cryptocurrency market has not had such low volatility in years; considering everything going on in the global economy. Because of this, the majority of Freeway users find this hard to believe. This sparked a wave of FUD around Freeway’s platform, its vision, and its future plans.
This panic caused the Freeway (FWT) token to lose more than 80% of its value in hours. According to their Twitter account, this decision is a precautionary action as an answer to the unprecedented volatility in the forex and crypto markets. While withdrawals are halted, Freeway claims that it will continue to diversify its asset base. As per their tweet, they will do this to manage exposure to future fluctuations and volatility in the market.
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
FatMan’s Twitter Claims
One anonymous Twitter influencer with the pseudonym FatMan made an interesting tweet two days ago, on the 22nd of October. He publicly called out the crypto yield platform, Freeway, suggesting all of its users withdraw their funds from the platform. He claims that, after spending some time researching and analyzing the platform, he came to the conclusion that they might be operating a Ponzi scheme. For your information, just two days after his tweet, Freeway halted withdrawal services and deleted most information about their team. This move increased FatMan’s suspicions regarding the platform, and he claims that this move just validated his prior statement.
Two hours ago, Freeway halted all platform withdrawals. They also wiped the names of all team members from their website. It looks like it’s over. Another $100m+ rug. https://t.co/CUHZRygRGM pic.twitter.com/BJE4QMtkPy
— FatMan (@FatManTerra) October 23, 2022
FatMan’s suspicions arose when he noticed that large withdrawals from the platform were being delayed. Although small withdrawals did not encounter any delays, there was no reason for a delay on larger transactions. In his thread, FatMan also mentions the “scam ICO” of Freeway’s Estonian entity token, Tokeneo.
Is Freeway a Ponzi?
Nothing is confirmed yet. Only time will tell whether Freeway is a Ponzi or not. Nevertheless, none of the users can withdraw their staked assets from Freeway until further notice. Usually, when teams take such decisions, they warn their users prior to implementing the decision. That is why we don’t blame all the panic, accusations, and FUD around Freeway’s platform right now.
Again, we don’t know whether Freeway is illegally operating a Ponzi scheme. Nevertheless, if they were, this would be one of the biggest schemes in the crypto market since Freeway has more than $160 million in assets under management (AUM).