Key Takeaways:
- UK-based crypto platform Freeway barred investors from withdrawing their funds
- Its native token, FWT, plummeted over 70% on the news.
- Freeway could be a rug-pull scam.
WISCONSIN (CoinChapter.com) — UK-based crypto platform Freeway barred users from withdrawing their funds on Oct. 23, raising fears that the company may turn out to be a “rug-pull” scam. It had promised customers a 43% return on investment before turning its back on them.
Freeway (FWT) Token Drops 70% On The News
The Freeway platform’s native token, FWT, dropped over 70% after the news. The sell off worsened after the Freeway deleted the names and photos of some of the members of its development team. At this time, holders are unable to access their accounts.
As a distraction to the poor investors involved, Freeway founder and CEO Sadie Hutton put a statement on the site which said, “As all of you will be aware, there has been unprecedented volatility in Foreign Exchange and Cryptocurrency markets in recent times.”
This is all nonsense and nothing but a likely diversion as the company liquidates.
The site also claims a company value of $161 million. Of course, no one can verify this, but that is what was posted.
Novice Traders, Be Wise and Beware
A major giveaway and notice to novice traders are how Freeway described on YouTube videos that their company was a money machine without explaining exactly how it worked.
Some videos said it did not matter if the cryptocurrency market was doing good or bad. One can always earn profits. However, how one may earn those profits was consistently left out. Freeway also claimed to have won a “Staking Platform of the Year 2022” award at the AIBC Asia Conference in Dubai.
Again, like the YouTube videos where there were no explanations of the processes of the “money machine,” the ability to track down Freeway’s involvement in the conference in fine detail is nowhere to be found. The AIBC is widely known and legitimate; Freeway’s details are not there.
Origins
Freeway claims to have begun work in 2020 to build the company “in stealth” before launching operations.
They began public trading in 2021 after a private sale of AuBit One security tokens. Freeway claimed to have sold nearly $2 million of AuBit One. As of today, investors do not know what to believe anymore; this should be another lesson for traders, new and old, to do research and be careful of shady promises.
