A bright future for Freeway and our community

Dear Freeway community,

For those of you who know Freeway well, it will probably come as no surprise to you that the team has not been sitting still since the events on the 13th October 2022 which we updated you about earlier today. We have worked quickly to reduce our overheads and to put a plan to resume Supercharger simulation buy-backs in place.

The good news is that since the 13th, the algorithms have performed as they should. Freeway continues to have its remaining capital at work, circa $36.8 million at the time, and the balance has grown by more than 50% in the previous two months without increasing risk (recouping 16% of the loss already) already to $55.1 million.

The more than $18 million in trading performance, alongside a number of our users coming onboard to license the trading algorithms directly, has allowed us to negotiate a new tradeable credit line of $70 million that has been deployed as of last week — money that we can use to power the algorithms. We’re wary of forecasts at this point, but if this performance were to continue (and as we know, the market doesn’t always go exactly as expected), then we could be in a position to resume Supercharger buy-backs, as well as having launched key new products, in as little as 9–12 months’ time — a considerable improvement from the previous worst case expected timeline in mid-October of 2–2.5 years.

This means we are currently on track to resume buy-backs again in 2023, while at the same time expanding the range of products and services on offer to our Freeway community.

We have rapidly deployed access to Direct Licensing of our algorithms as part of accelerating our roadmap in 2023 — more on that a bit later.

To accelerate things further, a key part of our recovery programme is a suite of new products and services, including Earn & Protect, which will offer rewards of up to 12.5%. Earn and Protect also incorporates a number of user protections, including a hard stop-loss safeguard of 2% at the regulated brokerage level, which will protect 98% of all borrowed assets against the risk of trading losses. Unlike Supercharger simulations which do not represent debt or create legal entitlements, Earn & Protect includes clear legal obligations to repay 100% of borrowed assets on demand (subject to terms and conditions). We believe these protections are a major innovation in the crypto lending space and will give eligible users peace of mind that is not available anywhere else. You’ll hear a lot more about Earn & Protect when it’s ready to launch.

In addition to our product launches, our algorithms remain extremely attractive, and we are in conversations with a number of high net worth clients and eligible community members who are interested in direct licensing access to the algorithms so that they can use them to trade themselves.

We have been offering access to our algorithms to users who are eligible for an AuBit Prime account and are in a position to commit funds of $50,000 or more into it. These users have the ability to define their preferred level of risk for the algorithms. We’re happy to say that 52 users have registered, with 26 having already funded their account via AuBit Prime and are now actively trading with the algorithms, depositing a combined total of around $3 million so far.

The revenues that Freeway makes from these transactions will accelerate our recovery in multiple ways, and this is another reason why we’ve been able to negotiate our new credit line.

If you’re outside the US and interested in being part of this growing community of people who are accessing the algorithms in this way, please do get in touch at access@freeway.io.

Olivia has compiled some telegram feedback from some of these users about the direct licensing of the algorithms available on the Telegram channel here (please note that these are just within the social channels and not something we have vetted or endorse).

Eligible US users will also get access to planned products including Earn and Protect US and Earn and Protect US Plus with closer access to the algorithms.

Looking further ahead, we also have plans to launch a Freeway stablecoin, our own Layer-1 blockchain and other market-leading products including DeFi variants that users can hold directly in their own wallets, giving Freeway one of the most exciting product pipelines in the crypto space.

It’s been an extremely busy and productive three months for the team at Freeway following the event in October. We’ve worked very hard to establish and expedite a product and service roadmap and significant financing deals to accelerate ourselves through to full Supercharger simulation buy-backs and the ongoing growth of Freeway thereafter.

The team have been nothing short of phenomenal in their efforts, resolve, determination and passion to get things back to business as usual. We will not stop here. We will continue to innovate and find means of accelerating things further. We are pleased with our progress over the last couple of months that should accelerate our timelines by 2.5x and will keep that momentum going to hopefully accelerate things further.

Like you, we want to see Supercharger simulation buys and sells operational again, and we have a clear route ahead to achieve this, opening a new chapter for Freeway and our entire community.

Graham Doggart
Founder and co-CEO