Before you buy into Cloakcoin and its pump and dump campaign...

Though this will get downvoted out of existence by the obvious cloak pumping shills all over this, the guy pumping the fuck out of this on here, cocainesomething, admitted to owning 3% of all 4.5m coins in existence (maybe he's #3 on thier richlist http://cloak.blockexplorer.cc/richlist/). Its a POS coin so its all instamined (they get around this technicality by having it POW for the first 7 days, but rest assured the whales got fat quick on this one), which at current cloak to btc to USD prices checks out to $105,000. He probably got it during the instamine, but as theres not enough liquidity or cap right now to actually get that much out they are on a pump and dump campaign such as the deepdot ad they put out.

Obvious pump and dump aside, this coins "whitepapers" are more of a wishlist than any technical explaination of whats going on, its whole anonymity theory is just that, a theory thats never been tested or shown to provide real anonymity. It follows a similar trick as tor does, by using multiple hops to pass information along it can "cloak" the source or destination. Given the scale of altcoins dont quite stack up to that of Tor (which itself is increasingly threatened) it wouldnt be a stretch that sybil attacks could easily deanonymize this, or timing attacks, or volume correlation attacks, etc..... The issues surrounding coinjoin wasnt the protocol persay, it was the lack of anonymizing features that decouple the movement of coins from one address to another.

As far as the built in market feature it relies on nashx, which requires both parties to put up twice the value of the item, its not a bad idea but for most it will be a hard pill to swallow. Also it has a groupthink censorship mechanism, once again a good idea in the context of weeding out the darker stuff but its a slippery slope, if enough whiteknights and straightedgers run nodes they can effectively start wiping out the drug markets. Openbazaar has the right idea, anything goes, censorship will be the only morally correct form of censorship, self-censorship.

As for the p2p exchange feature it runs through bittrex via their api, no one yet has a working solution to the problem of creating a decentralized exchange.

At this point anyone who buys into this coin is in effect lining the pockets of these whales who happened to be running their mining rigs for the week this coin was being instamined.


Comments


[23 Points] DADNM:

What I fail to see is all these alt-coins fail to address the fundamental question, how can vendors convert them to otherwise more widely accepted fiat?

For those of you unaware, changing bitcoins to nationally recognized fiat is just one of the many key obstacles for successful vendors and by accepting alt coins, vendors are faced with an even greater challenge of converting a lesser demand alt coin into usable fiat.

TLDR: For any alt coin to truly challenge the dominance of bitcoin in darknet markets, it not only has to address the shortcomings of bitcoin but overcome the challenges that not even bitcoin has been able to.


[15 Points] None:

[deleted]


[11 Points] BroughtToUByCarlsJr:

x-posting here:

Hey folks, just want to share my thoughts about CloakCoin. Initially I was very excited but some red flags were raised.

Putting all these together makes it seem like an elaborate scam. If my /r/cloak thread is deleted (which would then be found in /r/undelete), that would be even more reason to suspect. Buyer beware...


[10 Points] noway__:

I second the notion. Bitcoin is the real deal.

All the altcoins are scams.

In analogy it's like creating a ChildPornCoin for pedophiles, it's a laughable idea.


[3 Points] None:

[deleted]


[6 Points] UndefinedExperience:

Fuck Cloakcoin.


[3 Points] Trappy_Pandora:

Disappointing, but thank you.

Could you describe the "groupthink" mechanic? In bitcoin's protocol there will be the "autonomous decentralized corporation" which facilitates votes for what the company does, based on equity in the ADC. The group that came up with that won some $40,000 worth of bitcoin in startup funding and now the code is actually being written.


[2 Points] ObamaIzHitla:

Thought that was pretty obvious; but as they a say "A fool and his money are soon parted".


[3 Points] Seio1:

As there are no instamine bagholders in DRK... and the whales pumping it to nearly $20 on the sole PROMISE of a CENTRALIZED anon. Which still doesn't work after months of constant failures. Give me a break... Obviously you feel your investment in some other coin being threatened by the Cloak. There is no other reasonable explanation for this kind of FUD. Otherwise you would not give a damn and waste your time on this...


[3 Points] gottubesteak:

Seen, ignored, and moved on. just fud.


[2 Points] exorbitantwealth:

There is a lot of big "but"'s in your post. Isn't anyone buying into any coin in effect lining the pockets of the first miners?

How is this any worse than any other coin?


[1 Points] StephenJH:

You're just fighting fora life preserver because Goodship DRK is sinking.


[1 Points] TheLegionBroken:

i don't know, those two or three guys going into every thread where cloakcoin is mentioned and shrieking at everybody who says anything negative is sure making me think that this is legit


[0 Points] None:

wish i read this last night!


[-1 Points] Blow-that-Doge:

USD to CLOAK pairing is coming to Hitbtc.com that how you convert it to fiat. I laugh at ll of you saying its a pump and Dump These devs have spent tons of time and effort in creating this project and the one market dev is just amazing.. It just got a $3.5K PR plan set in action so get ready to see it every where for more then a month... Yea real pump and dump.. I love how it was a Dark Fan boy who started this thread.. Continue to be butt-hurt by ur Instamine and no results. Enjoy the dark side all!!! Bout to go munch some onions