Crypto investment platform Freeway hasn’t restarted services after a trading failure “dramatically impacted” the firm’s portfolio, and its in-house token dropped 80% in value.
It will “take time” before Freeway will resume its services, the firm said, though it’s not clear when trading may resume.
The company also wiped the names and photos of employees from its website sometime between Sept. 16 and the day it halted services, according to an internet archive.
“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,” Freeway said in a tweet.
Pointing to “market volatility,” Freeway paused services on Sunday. The platform had allowed users to purchase so-called “Superchargers,” which generate yield and can be sold back to the company. Freeway had claimed to offer up to 43% annual rewards on these products.
The company’s in-house token has dropped by 80.5% in the last seven days. The token was trading at $0.00136355 on Wednesday afternoon, according to CoinGecko.
“In order for us to resume Supercharger buy-backs we need to be in a position to execute safely. We will therefore need to see significant inroads into the losses before that can happen, and that will take time,” Freeway said.
The company says it will initiate a four-pronged recovery plan. Steps include using a “controlled environment” to maintain “the management and growth of remaining funds,” a new diversification strategy and starting an “Earn and Protect” program. Freeway also said it plans to deploy “major new funding in a totally new product,” but did not offer more details because the funding is not finalized.