Crypto platform Freeway has halted all cryptocurrency withdrawals, citing market volatility. The FWT token fell more than 80% following the decision. Some in the crypto community say it would be a $160 million rug pull.
A poorly disguised rug jumper?
Freeway, a staking platform that offered to pay its users a 43% annual fee, has suspended cryptocurrency withdrawals.
Justifying this decision because of “market volatility”, the real reasons behind the shutdown could be much darker.
There are several indications that it could be a “rug pull”, meaning that some of the team members left with the cash.
On 22 October, 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 remove 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 all [their money]. “
To support his point, FatManTerra then states 3 facts:
- False statements on the Freeway website;
- A dubious legal structure;
- Unclear monetisation strategy.
The next day, October 23, Freeway announces from several channels (its website, Twitter and Telegram) to pause 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 to the cessation of withdrawals from Freeway, several team members were 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 that it would be a rug pull and that some members of the Freeway team would have monopolized the 160 million dollars locked on the platform.
FWT token drops significantly
As a direct result of this decision, the Freeway platform’s token, FWT, has begun a steep decline. The price of the FWT token went from $0.0074 to almost $0.00090 at its lowest point, a drop of about 87% in just 35 hours.
At the time of writing, the situation remains dire for the FWT and it is still down 80% since the Freeway announcement:
FWT price evolution following Freeway announcement
At the time of writing, there is no certainty that this is a rug pull orchestrated by some members of the Freeway team. However, the many clues on display suggest that a $160 million rug pull did take place.
We’ll certainly know more in the coming days
