CloakCoin, a privacy-centric altcoin launched in 2014, has announced a “major overhaul and reconstruction” to improve its reputation and facilitate anonymous cryptocurrency transactions.
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CloakCoin: Former Pump and Dump Scam Now Wants Legitimacy
This cryptocurrency was originally created as a fraudulent pump and dump scheme. Launched on June 3, 2014, the currency quickly reached a market cap of more than $5 million USD. However, the original developers never delivered on their promises, and the value of the coin dropped dramatically as soon as investors realized the project was a fraud.
After the original developers disappeared, the community that grew around CloakCoin’s hype took over the project and set out to make the coin what it was promised to be.
Cashmen, a community leader, told press that new developers have totally rebuilt CloakCoin in an effort to make it a legitimate cryptocurrency.
“We had to do everything from scratch,” he said, “the team concept, the code, etc.”
“Only the name has stuck.”
According to the new team, the anonymous currency’s code base has been entirely redone, “including new features and major upgrades,” as reported in a press release.
The new CloakCoin, developers said the currency uses the novel Proof of Stake Anonymous Version 3 consensus protocol alongside the x13 mining algorithm. The team said this combination enables “speedy transaction confirmations.”
The team reported that it has not set a future deadline for the creation of the last coin. This decision, they said, serves to hold miner interest, removing diminishing rewards from the equation. Additionally, developers noted that users with “open and unlocked-for-staking wallets will earn 6% p.a. on their balance.”
In terms of privacy, the new development team reported that the recently-released CloakCoin wallet enables “trustless anonymous transactions without the need of master nodes or any other centralized infrastructure.
Additionally, developers have implemented an onion router system to “provide an extra layer of anonymity.”
CloakCoin provided press with the following list of features added in the overhaul:
PoSA3 Consensus Protocol
CloakCoin is a truly anonymous cryptocurrency with PoSA3 consensus protocol. The Cloak Shield infrastructure provides additional security to the CloakCoin network by making use of ECDH protocol to establish a secure shared connection between two parties for communication. During a PoSA send, the mixer nodes provide extra inputs and outputs to the transaction in order to ‘cloak’ the real sender and receiver, making it impossible to determine who sent funds to whom. While the parties involved in the transaction benefit from the added security, the mixers enabling the transactions share 1.8 percent of the transaction value (transmission fee) among themselves.
CloakCoin offers educational resources to the community through Cloak TV, the official YouTube channel of CloakCoin.
In the Pipeline
The CloakCoin developers are working on creating a place where the Cloak community can spend their CloakCoins. CloakCoin’s own marketplace called OneMarket, currently under development.
What do you think about the new CloakCoin? Is it trustworthy? Let us know in the comments below.
Images courtesy of CloakCoin.