Is Arweave (AR) Scam?

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Mrcoin

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Aarweave is seeking to disrupt a market dominated by existing storage giants like Google, Amazon and Microsoft. Will it be successful or just scam? Let's find out in this review.​

Overview of Arweave​

Arweave is a new type of storage that backs data with sustainable and perpetual endowments, allowing users and developers to truly store data forever – for the very first time.

Arweave was originally named Archain in 2017, but it rebranded in 2018 when the Arweave team was accepted to participate in the startup accelerator Techstars.

Arweave then raised $5 million in 2019 from noted venture capital firms including Andreessen Horowitz and Union Square Ventures.

AR is Arweave’s native cryptocurrency coin. It is used to pay transaction fees on Arweave, including storing data, retrieving data, interacting with perma web applications, and sending AR coins

AR has a maximum supply of 66 million, and 55 million AR were minted when the Arweave main net went live in June 2018. The remaining 11 million AR will be minted as block rewards for Arweave nodes​

Is Arweave secure?​


The platform promotes that it has integrated a variety of top-level security features. They also guarantee that there is no risk of loss because the user's data is hosted across multiple nodes simultaneously. If one goes down or is corrupted, the others can fill the void and keep your data accessible. In this way, Arweave users enjoy more security than its centralized competition can provide.

Fortunately, there is no information that the token was hacked or the firm had any security breach before. It could be proven that the security of Arweave is solid.​

How about Arweave’s team?​




The central figure here is Sam Williams — the founder and creative force behind the project. Actively tours conferences promoting the project.

Nearly all other team members studied with Sam at the University of Kent or University of Nottingham (except Matt Lockyer and India Raybould). All team members list themselves as Arweave employees on social media ( except Adam Kennedy and Matt Lockyer). Matt Lockyer did retweet about the project and praised it, so we’re counting that. Adam Kennedy is a freelancer, so maybe is just hired as such by Arweave.

There is no doubt that the team is real. The project has its own YouTube channel, which features mostly Sam Williams and William Jones. Most of the team was photographed together.

Arweave’s concerns​


A user has shown his concerns about Arweave for some of characteristics such as:

His first concern relates to AR’s tokenomics, specifically the allocation of its supply. As you can see here on the Arweave explorer, almost half of AR’s supply is heavily concentrated in the top 20 or so wallets.

It looks like these whales could dump their AR at any time, but the constant stream of demand for AR coming from Solana would and probably has offset most of that effect.

This brings him to the second concern, and that’s that Arweave success depends heavily on Solana’s, at least for the time being. While Arweave is pushing to offer similar decentralized storage services to other cryptocurrencies, ideally, Arweave’s growth would come from its own ecosystem of apps and users on the permaweb.

Arweave’s app explorer suggests the permaweb doesn’t have very many active users for the few apps it does have. Arweave’s total active user count is slightly north of 1000, and that’s assuming the same user isn’t using multiple apps.

On the bright side, he did notice that Arweave’s browser extension wallet has over 10,000 downloads, and that’s definitely not bad considering Arweave’s market cap. Arweave’s blockchain explorer also notes that there are over 90,000 Arweave wallets, but it also reveals the relative centralization of the block weave.

There are just 151 nodes on Arweave, and though they’re somewhat geographically dispersed, this relates to another potential problem, which is significantly more severe than all the others combined.

We wonder whether Arweave is a scam or legitimate. Although there may not be a formula to answer this question with 100% accuracy, we have enough expertise investigating suspected frauds that we are adept at detecting the signs. How about your opinion? Leave the comment in the box below to discuss now.











 

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