Token Description & Project Background

Arweave is a blockchain-like protocol for decentrally safekeeping files, forever, across a distributed network of computers.

It's based on a Proof-of-Access (PoA) consensus mechanism, which is similar to Proof-of-Work (PoW); and, furthermore, it employs a novel "blockweave" structure. It’s similar to blockchain (blocks, linked, in order, forming a chain) except that Arweave stores its data in a graph of blocks (with each block linked to a pair of prior ones).

This mechanism supposedly allows very high levels of scalability, speed, and low-cost.

To store data, users purchase ARs, which are accepted as payment by computers on the network (which is backed by a sustainable endowment).

AR has a maximum supply of 66 million; 55 million AR were minted when the Arweave mainnet went live in 2018. The remaining AR will be minted as block rewards for Arweave nodes.

The mainnet and AR token launched in June 2018. 

Arweave was founded by Sam Williams and William Jones in 2017 in London as Minimum Spanning Technologies Limited. The project was initially named Archain but rebranded to Arweave in 2018. 

Risks of AR

Like an investment in other crypto assets, there are some general risks to investing in AR. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in AR is subject to the following specific risks:

• Arweave faces competition from other data storage projects. Any potential success associated with AR depends on Arweave’s rate of adoption.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with AR. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The AR community and its founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of AR have no recourse to the AR community, Arweave founding team, or Uphold if AR declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing AR on the Uphold Platform, Uphold performed due diligence on AR and determined that AR is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of AR, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of AR.
• Any marketing materials put forward by the AR social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with AR, including any code defects, security breaches and other threats concerning AR and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with AR, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of AR. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 21, 2023.