A new domino falls? – The initial earthquake of earth disaster (LUNA) and its stablecoin UST had many replicas. Bankruptcy of the fund Three Arrows Capitalfreezing of the cryptos of the customers of Celsius… From now on, it is the users of the platform Freeway who seem caught in the turmoil, because some services have just been interrupted overnight.
Freeway’s “Superchargers” out of fuel
The decentralized finance (DeFi) platform Freeway offers a service of yield on deposits called « Supercharger ». This service claims to offer annual interest rates of up to 43%.
But this Sunday, October 23, nothing is going well. Freeway teams annoncent indeed on Twitter they must “stop” redemptions (buy-back) of the Supercharger service. The main reason given is a “unprecedented volatility” in the foreign exchange and cryptocurrency markets.
“(…) for a temporary period, we will not be buying Supercharger simulations until our new strategies are implemented.
We will let you know when we are ready to restart partial Supercharger simulation purchases (redemptions) and then when we can restart full Supercharger simulation purchases, as well as Freeway Token (FWT) deposits and purchases on the platform. »
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Consequence: the FWT token collapses by -80% in a few hours
In a crypto market very feverishwhere the slightest sign of weakness can cause panic, the effect of Freeway’s suspension announcement was immediate.
Within hours of the Supercharger service halting redemptions, the token FWT passed from around 0,0069 dollar the unit, only 0,0013 dollar. A hell of a fall of more than 80% of his course.
Do users of Freeway and this Supercharger service will see again their deposits one day? It’s way too early to tell, but the lending service Celsius had also started with freeze withdrawals cryptos, before finally go bankrupt a month later. Just wait and hope it’s not a repeated twice.
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