The crypto market has continued to see some of the most volatile and some of the biggest companies with the most potential fall. And as the rest of the market prepares for some of the worst downfalls that it has experienced in years, some projects might soon be contributing to that downfall.
Crypto projects have started to fall left and right following the start of the price drop. With less people inclined to spend money in the market, there is a real issue that people have to deal with when it comes to investing in cryptocurrencies. And as less people were investing in the market, companies had to shut down due to mounting costs.
The crypto market alone saw a monumental loss of over 60% of the total market cap. With over $2 trillion being wiped off the market in an instant, two major events contributed to this major downfall.
While a lot of macroeconomic factors contributed to the downfall of the crypto market, these two events led to declining investor confidence. The two events in question were the Luna/Terra crash and the Celsius bankruptcy. And the recent incident with Freeway is looking very similar to the Celsius bankruptcy.
Freeway Stops Withdrawals
If the current situation the with the market is anything to go by, many investors were currently looking for a win. Not only did they want the crypto market as a whole to really improve, but they were also looking for major cryptocurrencies to make a major profit.
However, despite what most investors want, the current market condition does not see an upside for a long time. The Freeway token saw a major drop of over 80% at the time of writing, leaving many investors scared that this might be another Celsius situation.
Many Similarities with Celsius
Of course, if the parallels with Celsius were not obvious enough, Freeway soon restricted investors’ ability to withdraw from the platform. Despite promising a return of 43%, the truth is that the company could soon be going bankrupt, as it freezes investors’ accounts.
After restricting their ability to withdraw from the project, Freeway stated that they followed through on this action because of market volatility. However, their market cap is telling a different story, as it went from $70 million to a dangerously low $10 million.
The Likely End of Freeway
With the rate dropping so dangerously low, many have had to wonder why history is repeating itself. The most likely course of action, given that the market is still extremely volatile, it is very unlikely that Freeway will be making a comeback. Therefore, legal intervention might be necessary to make the firm pay the investors.