The recently launched Cloakcoin aims to achieve what several other coins, such as Darkcoin and Blackcoin, are aiming for: total anonymity. The standard usage Bitcoin often entails some transaction traceability.
Cloakcoin seeks to employ an “anonymization flow”, whereby available nodes on the network supply “anonymization services”. In addition, it looks to improve upon Bitcoin’s blockchain structure, where a transaction is based off of every transaction before it. The entire blockchain size is therefore enormous, and it may take days to download. And it continues to grow. Cloakcoin looks to store its entire blockchain history in only a few finite blocks.
Cloakcoin uses proof of stake encryption, an increasingly popular approach used by Peercoin, Blackcoin and others. While it wasn’t premined, its entire mining period lasted only 7 days. Block times are 60 seconds.
World-Known FBS Chief Analyst to Cover US Election LiveGo to article >>
In terms of anonymity, it would seem that this doesn’t extend to its publicized “rich list”, showing the addresses of the biggest holders. The top holder has over $600,ooo worth. 11 holders have balances worth over $100,000. Combined, their stake is worth close to $2.3 million, roughly 30% of the total of $7.5 million worth in circulation.
The coin has been on a tear of late, gaining roughly 400% since the start of the month and nearly 100% during the past 24h. Cloakcoin now trades at the equivalent of $1.68 on Cryptsy and $1.58 on MintPal, with over $700,000 worth traded during the past 24h. The wild trading has given rise to the relatively wide price disparity between its major exchanges, despite the ample liquidity available.
The coin now ranks 11th in market cap.
The rise likely results from a combination of promise for greater anonymity and a vicious cycle of speculation. Virtually all coins posting such unprecedented growth in the past have given back most or all of their gains within a few months. Cloakcoin is likely to experience a strong pullback, although the appeal of anonymous currencies may dictate its longer term outlook.