Four days ago, the crypto rewards platform Freeway.io, formally called Aubit, halted withdrawals on October 23 after citing it was protecting the firm’s portfolio from “market fluctuations and volatility.” Two days later, the team updated the community and explained on Tuesday that “one of Freeway’s trading strategies appears to have failed and caused a substantial loss.”
Crypto Rewards Company Freeway Updates Crypto Community After Preventing Supercharger Buy-Back
Crypto rewards company Freeway.io was one such platform that claimed to offer a 40% annual percentage yield (APY) on “Supercharger” accounts. However, on October 22, the whistleblower known as “Fatman” published a tweet warning people to withdraw their funds from the freeway platform.
“I believe they are operating a Ponzi scheme,” Fatman told his 103,000 Twitter followers. “In my opinion, it’s likely that Freeway will collapse within the next few months and that all depositors will lose everything.”
The next day, Freeway published an update stating that the prize was to reallocate funds to protect the company’s portfolio from “market volatility and volatility”. In the midst of the re-allotment process, it said that operations will be halted and it could not comment further on the situation.
The news was followed with intense speculation and claims that some of the company’s employees were erased from the firm’s web portal. An internet archive of the company’s website confirms that specific employee names were deleted from the site at some point during the end of September. On October 25, Freeway’s Twitter account gave the public an update on where the company stands.
The language used is ambiguous and the team’s Twitter thread Says: “The following is our understanding: One of Freeway’s trading strategies has failed and has resulted in significant losses due to unforeseen market volatility.” Freeway claims that it observed two “convergence factors” that led to the event – “the unprecedented US dollar rally and crypto volatility.”
Interestingly, the U.S. dollar rally has been known for quite some time and the so-called “unprecedented” rise has been well documented by the financial media. The U.S. dollar has been on the rise for well over six months and crypto volatility has been super minimal in recent times compared to most global assets.
freeway ahead Told that “the trade execution performed by Ardu Prime Brokerage had nothing to do with this failure.” company emphasis on that “the trading strategy was executed as programmed, but market volatility resulted in increased margin usage leading to losses.”
The crypto rewards company Freeway added:
Unfortunately, the trading loss that has been incurred has dramatically impacted Freeway’s portfolio, but, having been made aware of these losses we are taking steps to secure Freeway’s remaining funds, and have already moved out of the loss-producing strategy.
Supercharger buy-back will not resume until firm is ‘in a position to execute safely’ Freeway has no idea about the time it will take to resume operations
Freeway also detailed that four different recovery plans were in motion and that one of them plans to allocate “funding into an entirely new product with impressive projected profitability.” Company shuts down Twitter thread Saying That recovery plans will take time and plans need to be executed before supercharger operations can resume.
“In order for us to resume Supercharger buy-backs we need to be in a position to execute safely,” Freeway said. “We will therefore need to see significant inroads into the losses before that can happen, and that will take time.” Freeway’s Twitter thread is locked and only people Freeway mentions (@) can reply to the company’s update.
Twitter thread of the Freeway team have concluded,
We know your next question will be about the time it takes to join. We have no immediate answer to this.
Freeway’s native crypto asset called freeway (FWT) is down close to 80% against the U.S. dollar during the last seven days. During the last 24 hours, however, FWT has seen some gains and managed to climb from $0.00114042 per unit to $0.00147076 per FWT.
