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Arweave price pump: How high can AR go after Meta deal to archive FB’s Instagram collectibles?

By Raphael Sanis

Edited by Charlie Mellor

10:58, 3 November 2022

Representation of the AR token overlaid on a price chart
AR is the native token for Arweave, a blockchain solution for data storage – Photo: Shutterstock

Arweave (AR) has rocketed by more than 60% after the news that it will be collaborating with the social media network Meta (META).

AR to USD

The blockchain storage solution will be providing its services for Meta’s non-fungible token (NFT) endeavours.

Meta’s Instagram app revealed it will start allowing users to mint and sell NFTs, which will be archived on Arweave.

AR’s breakout

Despite a few peaks, the AR cryptocurrency has struggled with this year’s bear market and it was down 74% for the year to date.

However, after Arweave’s integration with Meta was disclosed on Twitter on Wednesday, the AR token rocketed. It closed 2 November at $11.09 and a day later was trading at $15.88 (at the time of writing).

ETH/USD

3,446.46 Price
-1.100% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.60 Price
+0.120% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

SOL/USD

174.44 Price
-0.250% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

DOGE/USD

0.13 Price
+0.210% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

As of 3 November, the data token had climbed by 60% in the past 24 hours and was up 65% over the previous month.

The Meta deal

Stephane Kasriel, head of commerce and financial technologies at Meta, tweeted that Instagram is moving into the world of NFTs. Businesses will have the functions to create and trade these tokens.

In a post on Medium, he added: “A small group of creators will soon be able to create digital collectibles (NFTs) and sell them right on Instagram. Meta won’t charge fees to create or sell digital collectibles until 2024.”

These digital assets will be stored on the Arweave platform. Instagram is also partnering with the OpenSea NFT marketplace and the Solana (SOL) blockchain to achieve its Web3 ambitions.

Sam William, Arweave’s founder, tweeted in response to this announcement:

“We applaud their diligence and implementation of permanent storage for their users. NFT permanence is a sign of digital asset quality.”

Markets in this article

META
Meta Platforms Inc (Extended Hours)
482.03 USD
-5.9 -1.210%
SOL/USD
Solana / USD
174.4374 USD
-0.4281 -0.250%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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