Heres my latest update on my favourite pick of the anoncoins, ie Cloak. If you’ve been wondering how Cloak has been getting on recently, well it has apparently spewed itself off a cliff. This following chart shows what being spewed off a cliff looks like! Data from MintPal exhange with 12 hour candles on log price scale.
For the past week Cloak has plummeted from near all-time highs to new all-time lows with the fall getting steeper and steeper and no apparent areas of support to be found anywhere. Incidentally ‘all-time’ isn’t very long in the world of Cloak, data only stretches back as far as June.
If you look closely you might see where I marked nice time to buy which was around the time I posted my last cloak post. I guess it was a nice time to buy if you only held for short term, if like me you are still ‘bag-holding’ then I can only offer my sympathy and hope you remembered not to invest what you can’t afford to lose. Personally I have been quietly buying more at these incredibly low prices, maybe I’m throwing good money after bad, or maybe I am an astute investor. Time will tell.
During the initial couple of days of the plunge I searched for reasons for the fall in price. But cloak apparently was falling on good news! The first version of anonymous transactions had just been released and seemed to be working. Also a mobile payment system ‘Cloakpal’ had been released also seemingly working well. The bitcoin forum thread prominantly featured a user called Bobsurplus who was organising pump n dump market manipulation in various alt-coins. If he was behind it or not I don’t know but it does look very much like Cloakcoin has been the victim of a huge pump n dump to me.
By the way I cannot vouch for the anonymous transactions implemetation. The wallet is closed source and an image was not released for my operating system. Just like with Darkcoin this is something I do not like however I suppose I can understand reasons for keeping closed source initially.
Anyway through all the rumours, and conspiracy theories it seems that there have been some real difficulties with the new anonymous transactions and for the moment have been recommended to switch that feature off by altering the config file. Perhaps this partly explains the fall in price too.
Lead developer, Alty (theDagger) has put an update on his twitter feed. The initial version of the code has been audited and some problems discovered, as already mentioned above. The team are working on this and still committed to developing a trustless, anonymous crypto coin, the holy grail.