Crypto analyst Fatman, who has been keeping a close eye on the Terra Luna controversy, warned on October 22 that Freeway, a platform for staking cryptocurrencies, might be a possible rug pull. The allegations were made right before the platform froze withdrawals and removed team member information from its website.
Something Fishy?
Formerly known as AuBit, Freeway offers the purchase of “Superchargers,” which simulate a range of cryptocurrencies. According to the firm, Superchargers are “virtual simulations of popular crypto and fiat currencies” that can only be used on the Freeway network.
Freeway claims supercharger holders will start earning daily rewards, which amount to a whopping 43% yearly return.
Freeway issued a statement justifying the suspension of services, saying the company has opted to diversify its assets to safeguard the system’s long-term viability and profitability. The action was reportedly taken because of the uncertainty in the foreign exchange and cryptocurrency markets.
The announcement claimed the move “will allow Freeway to maintain the highest level of Supercharger simulation rewards.”
In addition, Freeway stated that it would continue devoting resources to its underlying portfolio throughout this process, which would prevent it from buying back any Superchargers and thus prevent consumers from selling superchargers. Further, there was no mention of how long this process would last.
Fatman calls out
Meanwhile, analyst Fatman points out that halted withdrawals are a key indicator of the platform’s health. Another reason that is raising eyebrows in crypto is the deletion of team member details. In a tweet on October 22, Fatman expressed his reservations about the staking platform.
Two hours ago, Freeway halted all platform withdrawals. They also wiped the names of all team members from their website. It looks like it's over. Another $100m+ rug. https://t.co/CUHZRygRGM pic.twitter.com/BJE4QMtkPy
— FatMan (@FatManTerra) October 23, 2022
Just days later, on October 27, Fatman shared a few screenshots from Freeway’s private telegram group where company insiders are seen discussing how they can take legal action against the analyst.
FWT Token drops
The rumors haven’t been good for the platform’s native token, FWT, which dropped more than 70% right after the news broke out. However, the token seems to be bouncing back at the time of writing, up 35% over the past 24 hours.
