Cryptocurrency staking platform Freeway stated about the failure of one of its trading strategies, along with market conditions as the leading reason behind halting users withdrawals earlier this week, as reported by Cointelegraph.
According to Cointelegraph, on October 23, 2022, Freeway made the announcement of halting various transactions around high-yield “Supercharger” product, on account of effects of volatility without revealing any more details that resulted in the plummeting of the token’s price. On October 25, 2022, through a 22-part Twitter thread, Freeway stated more on the matter by revealing that one of Freeway’s trading strategies resulted in a failure which has impacted Freeway’s portfolio and caused losses to investors. Freeway highlighted that the rally of the United States dollar, along with cryptocurrency volatility, cause the trading strategy’s failure.
“The trading strategy was executed as it was programmed, but the market volatility caused a spike in margin utilisation leading to the loss,” the platform explained.
On the basis of information by Cointelegraph, the platform provides users up to 43% annual yield wards through utilisation of its “Superchargers” products. Users can deposit fiat currencies and cryptocurrencies, which are kept in regulated brokerage accounts that are leveraged for returns. However, earlier this week, the firm mentioned that it would be halting buys and deposits, and won’t be buying back Superchargers until the new strategies are put into action. Through a new post, Freeway stated about enacting a recovery plan for improvement and securing the rest of its funds. It is believed that the plan would help improve the management of its remaining funds, alternative diversification opportunities for investors, deploy and new product, along with a feature to ensure security of investors’ interests.
“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,” the platform noted.
(With insights from Cointelegraph)
Also Read: Filecoin unveils Web3.0-based initiative for clean energy production
Follow us on Twitter, Facebook, LinkedIn
Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.
How To Make Huge Profits In A Short Time With CryptoGet detailed training system that shows an absolute beginner (without any skill) how to make huge profits in a short time with crypto.
Crypto + NFT Quick Start CourseThe #1 course for profit in the Crypto & NFT world - You will discover the secrets that 99% of people don’t know yet
