The current bear market has rattled the digital asset industry to the core. A lesser-known crypto-staking platform, Freeway, is the latest to halt withdrawal services citing volatility in foreign exchange as well as cryptocurrency markets in recent times.
“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. This will allow Freeway to maintain the highest level of Supercharger simulation rewards.”
- Following the official update, Freeway’s native token, FWT, crashed by over 77% with a market cap of around $17 million following the nosedive.
- According to the whistleblower FatMan Terra, the website admin is currently in the process of removing the names of core team members behind the staking platform.
- He also said that while the team members are legitimate, some of their CVs/descriptions are “highly embellished.”
- Just two days ago, FatMan alleged that Freeway could be potentially operating a Ponzi scheme and predicted an impending collapse within the next few months.
- Market experts expect that the current turbulence will weed out excess, leverage, poor risk management, and fraudulent entities.
- The bear market has already claimed many projects, including Three Arrows Capital (3AC), Celsius, and Voyager Digital, in the third quarter of this year following the Terra implosion.
- Last week, popular German crypto bank Nuri notified its 500,000 users to withdraw funds from their accounts as it prepares to shut down and liquidate the business.
- Despite its “best efforts,” the company’s CEO, Kristina Mayer, asserted that it is unable to maintain its operations moving forward.
- Unlike Celsius, which stopped user withdrawals before everything went downhill, Nuri, on the other hand, asked users to withdraw all of their assets before the December 18 deadline.