I have recently discovered CloakCoin and I was amazed!
DISCLAIMER: I am in no way associated with the CloakCoin project; however, I do own a small amount.
In this post, however, I'd like to focus on why this coin is going to be BIG!
They are going to adopt Litecoin code base as a basis
Currently, the coin is built on top of Bitcoin code. Litecoin is moving forward very fast, supporting new features (e.g., atomic swaps, etc.). So CloakCoin will have everything that Litecoin has + their unique privacy benefits (Enigma) and staking.
CloakCoin is severely undervalued
CloakCoin has very small supply (5,105,624 CLOAK) and if it had the same supply as Bitcoin, one CLOAK would be worth $2.18. See Bitcoin Price Index. By the same metric,
- one Litecoin (LTC) would be worth $522.37
- one Monero (XMR) would be worth $198.22
- one Dash (DASH) would be worth $197.59
- one ZCash (ZEC) would be worth $50.87
- one Verge (XVG) would be worth $26.42
- one PIVX would be worth $12.90
- one CloakCoin (CLOAK) would be worth $2.18!!!
As you can see, it has tremendous growth potential compared to all major privacy coin competitions and Litecoin, which is hugely overvalued.
Generous 6% staking
In CloakCoin, every wallet can participate in Enigma transactions and everybody receives 6%/year staking rewards. There are no minimums, no need to run expensive masternodes, and the frequency of staking depends on the held amounts.
Compare that with Dash, which requires 1000 DASH ($420,700) and offers 7%, or PIVX which offers 4.8% for staking and 6% for masternodes which require 10,000 PIVX ($38,837.50).
Obviously, running the Dash and PIVX masternodes is prohibitively expensive. Also, PIVX staking requires constantly running their wallet.
CloakCoin transactions are very fast and cheap.
I recently paid 0.01 CLOAK for a transaction. Withdrawals from Bittrex are almost instantaneous - it feels as the coins are in your wallet the moment you press "Withdraw".
It seems to me that CloakCoin is a serious contender in the privacy and staking space, it will have everything that Litecoin has + privacy and staking and it offers rewards to all wallets instead of the selected whales. The team is growing and will also establish a development fund to continue work on CloakCoin.
For more info, see their recently updated whitepaper.
Comments? Please, post arguments to the contrary.
One counter-argument I've seen from Monero people is that staking destroys privacy by revealing wallet balance.