The Freeway crypto platform has halted all cryptocurrency withdrawals, citing market volatility. The FWT token fell by more than 80% following this decision. Part of the crypto community claims it would be a $160 million rug pull.
A badly camouflaged rug pull?
Freewaya staking platform that offered to reward its users at a rate of 43% per year, just suspended cryptocurrency withdrawals.
Justifying this decision because of the “market volatility”, the real reasons behind this shutdown could be much darker.
Several things indicate that it could be a “rug sweater”understand that some team members would have left with the cash register.
On October 22, Twitter user FatManTerra was the first to alert the community to the risks associated with Freeway:
“If anyone has funds on the Freeway crypto platform, I suggest you withdraw them immediately. I believe they are operating a Ponzi scheme. In my opinion it is likely that Freeway will collapse in the next few months and all users will lose everything [leur argent]. »
To support his words, FatManTerra then exposes 3 facts :
- Misrepresentations on the Freeway website;
- A dubious legal structure;
- An unclear monetization strategy.
The next day, October 23, Freeway announced from several channels (its website, Twitter and Telegram) that it was pausing withdrawals from the platform:
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
In parallel with the cessation of withdrawals on Freeway, several team members have been removed from the dedicated page on the website. Since then, no more communication from the founding members.
A majority of the crypto-community therefore agrees to believe that it would be a rug pull and that certain members of the Freeway team would have monopolized the 160 million dollars locked on the platform.
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FWT Token Drops Significantly
As a direct consequence of this decision, the token of the Freeway platform, the FWT, began a very sharp fall. The price of the FWT token fell from $0.0074 to almost $0.00090 at its lowest point, a drop of around 87% in just 35 hours.
At the time of writing these lines, the situation remains catastrophic for the FWT and it still shows an 80% drop since Freeway’s announcement:
Evolution of the FWT price following the announcement of Freeway
At the time of writing these lines, nothing indicates with certainty yet that it is indeed a rug pull orchestrated by certain members of the Freeway team. However, the numerous clues exposed suggest that a rug pull of 160 million dollars has indeed taken place.
We will certainly know more in the coming days.
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Editor-in-chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I have been striving to share quality content so that the sector becomes more democratic for everyone.
Clement Wardzala
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