What is CloakCoin (CLOAK)? The Privacy Crypto You've Probably Never Heard Of
May, 26 2025
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Most people know Bitcoin. Some know Monero or Zcash. But if you’ve never heard of CloakCoin (CLOAK), you’re not alone. Launched in May 2014, CloakCoin was built to be the ultimate private digital cash - untraceable, fungible, and designed to hide every transaction from prying eyes. Today, it’s a ghost in the crypto world. Its price is a fraction of a penny. Trading volume is barely visible. And yet, it still runs. People still stake it. The wallet still works. So what exactly is CloakCoin, and why does it still exist at all?
How CloakCoin Works: Privacy Through Mixing
CloakCoin doesn’t rely on fancy math like Zcash’s zk-SNARKs or Monero’s ring signatures. Instead, it uses something called ENIGMA - an off-chain coin mixing system. Here’s how it works: when you send CLOAK, your wallet doesn’t send the coins directly to the recipient. It breaks the transaction into pieces and routes them through other users’ wallets that have volunteered to act as ENIGMA mixer nodes. These nodes shuffle the coins, mix them with others, and send them out in a different pattern. No one can trace which input became which output. Your IP address is hidden. Your transaction history is erased. The system calls this CloakShield - a secure encryption layer that keeps all communication between wallets private.
This isn’t just obfuscation. It’s full fungibility. Every CLOAK coin is identical, no matter where it’s been. That’s important. With Bitcoin, if a coin was used in a scam, exchanges might freeze it. With CLOAK, that doesn’t happen. All coins are treated the same. That’s the whole point.
Proof-of-Stake with a 6% Reward
CloakCoin is one of the few privacy coins that pays you just for holding it. It runs on a pure proof-of-stake (PoS) model. That means you don’t need expensive mining rigs. You just keep your wallet open, connected to the internet, and hold your CLOAK coins. In return, you earn 6% annual interest. That’s higher than most PoS coins - even Ethereum’s staking yield dropped below 4% after its merge.
There’s even more: if you run an ENIGMA mixer node, you get extra rewards. It’s a built-in incentive to help secure the network. You’re not just holding money - you’re helping make transactions private for everyone else. The system is designed to reward participation, not just speculation.
Speed and Technical Specs
CloakCoin blocks are confirmed every 60 seconds. That’s ten times faster than Bitcoin’s 10-minute blocks. It’s not as fast as Solana or Ripple, but for a privacy coin launched in 2014, it’s solid. The network uses the X13 hashing algorithm - a combination of 13 different hash functions - which was meant to be ASIC-resistant and keep mining decentralized. But here’s the twist: while CloakCoin claims to be pure PoS, some sources say it started as a hybrid PoW/PoS system. That’s confusing. The official site doesn’t clarify it. But today, mining is irrelevant. Almost all CLOAK is held and staked, not mined.
The circulating supply is around 6.1 million coins. There’s no hard cap. That means more can be created over time through staking rewards. But because the reward rate is fixed at 6%, inflation is predictable and slow.
Why No One Talks About CloakCoin Anymore
Here’s the hard truth: CloakCoin is barely alive in the market. As of October 2023, its market cap hovered around $170,000. That’s less than the cost of a used car. Monero’s market cap? Over $2.8 billion. Zcash? $1.1 billion. CloakCoin’s daily trading volume? Around $27 on TradeOgre - the only exchange that still lists it. Most major exchanges like Binance, Coinbase, or Kraken dropped it years ago.
Why? Two big reasons. First, regulatory pressure. After 2020, countries like Japan banned privacy coins on exchanges. Financial regulators worldwide started cracking down on anything that hides transaction trails. CloakCoin, with its full anonymity, became a target. Second, community death. The Reddit community has 12 members. The Telegram group is silent. The official forum hasn’t had a new post in years. No news outlets cover it. No influencers talk about it. It’s a project stuck in 2015.
Who Still Uses CloakCoin?
Not merchants. Not apps. Not businesses. SpendBitcoins.com lists zero merchants accepting CLOAK. You can’t buy coffee, rent a VPN, or pay for a domain with it. The only people using it are a handful of long-term holders - people who bought in early, liked the 6% staking yield, and never sold. Some are true believers in privacy. Others just didn’t know how to cash out.
There’s no evidence of institutional use. No hedge funds. No wallets. No integration with DeFi. It doesn’t connect to any other blockchain. It’s a standalone island.
Is It Still Safe to Use?
Technically, yes. The wallet software still downloads and runs. GitHub shows commits as recent as June 2023 - bug fixes, minor updates. The code hasn’t been abandoned. But that doesn’t mean it’s secure. A small network of mixer nodes means less anonymity. If only 50 people are running ENIGMA nodes, and you’re sending coins through them, it’s easier to guess patterns. Monero’s network has thousands. CloakCoin’s has maybe dozens.
Also, the wallet isn’t user-friendly for beginners. Setting it up takes 15-20 minutes. No one offers customer support. No FAQ page. No help center. If your wallet gets out of sync, you’re on your own.
How to Get CloakCoin Today
If you still want CLOAK, here’s how:
- Go to cloakcoin.com and download the official wallet.
- Install it and let it sync with the network (this can take hours).
- Buy CLOAK on TradeOgre using Bitcoin or Ethereum.
- Transfer it to your wallet and start staking.
That’s it. No other exchanges work reliably. No apps. No mobile wallets. No fiat on-ramps. You need crypto to buy crypto - and you need to know where to look.
The Big Question: Is CloakCoin Worth It?
For speculation? No. It’s a dead asset. The price has dropped 99.89% from its peak in 2014. It won’t make you rich.
For privacy? Maybe. If you’re deeply committed to financial anonymity and don’t mind the lack of liquidity, the ENIGMA system still works. The 6% staking yield is real. And if you believe privacy should be a right - not a luxury for the rich - then holding CLOAK is a quiet act of resistance.
But here’s the catch: you’re not just buying a coin. You’re betting on a dying project. If the last 100 stakers stop running nodes, the network breaks. If the website goes down, you lose access. If no one updates the wallet, it becomes unusable.
CloakCoin isn’t dead. But it’s not alive either. It’s in limbo - a relic of early crypto privacy dreams, kept running by a few stubborn holders who refuse to let go.
What’s Next for CloakCoin?
No one knows. There’s no roadmap. No team announcements. No funding. No partnerships. The official website hasn’t changed since 2020. GitHub commits are sparse. The project survives on inertia - not vision.
Its future depends on one thing: whether the 6% staking reward is enough to keep people holding. If that yield disappears, or if the wallet stops working, CLOAK will vanish quietly - like a candle blown out in an empty room.
ola frank
November 26, 2025 AT 13:18CloakCoin’s ENIGMA protocol represents a fascinating architectural compromise: off-chain mixing as a substitute for cryptographic privacy primitives like ring signatures or zk-SNARKs. While this approach reduces computational overhead and preserves fungibility, it introduces a centralized trust model-albeit distributed across volunteer nodes. The network’s fragility stems from its reliance on human participation rather than algorithmic robustness. When the node count drops below a critical threshold, the anonymity set collapses, rendering the entire system vulnerable to correlation attacks. This is not merely a technical limitation; it’s a sociological failure of incentive alignment. The 6% PoS yield is insufficient to sustain long-term node participation when the asset’s utility is functionally nil outside of speculative hoarding.
imoleayo adebiyi
November 26, 2025 AT 20:20I find it deeply moving that despite everything-lack of adoption, regulatory hostility, near-zero liquidity-there are still people running nodes and staking CLOAK. It’s not about profit. It’s about principle. In a world where everything is tracked, monitored, and monetized, holding onto something that refuses to be traced feels like an act of quiet rebellion. The fact that the wallet still works, that commits still happen, that someone somewhere is still syncing the chain… that’s dignity. We don’t need hype. We just need people who care enough to keep the lights on.
Abby cant tell ya
November 28, 2025 AT 00:41So let me get this straight-you’re seriously staking a coin worth less than a candy bar and calling it "privacy resistance"? Honey, if your financial rebellion requires you to manually download a 2014-era wallet and pray it doesn’t crash, you’re not a crypto anarchist. You’re a digital hoarder with a side of delusion.
Janice Jose
November 28, 2025 AT 02:15I get why people write this stuff off as dead, but honestly? I think there’s beauty in things that linger. Like that one old bookstore that still has paper maps, or the vinyl shop that doesn’t take credit cards. CloakCoin’s not going to change the world, but maybe it’s holding space for a different kind of future-one where privacy isn’t a premium feature, but a default. I’m not investing. I’m just… keeping it alive, you know? For the weirdos who still believe in it.
Savan Prajapati
November 29, 2025 AT 15:446% APY is real. Wallet works. No one cares. That’s it. Stop overthinking. Just stake and chill.
Brian Bernfeld
November 30, 2025 AT 01:28Let me tell you something real-this isn’t just about crypto. This is about the soul of decentralization. Look at Monero. It’s got devs, community, funding, and a mission. CloakCoin? It’s a ghost town with a working server. But here’s the kicker: the fact that it’s still running at all means someone, somewhere, still believes in the idea. Maybe it’s a grandpa in Ohio who bought CLOAK in 2015 and never sold. Maybe it’s a hacker in Kyiv who uses it to send money to family without the state knowing. That’s not a dead coin. That’s a quiet monument to freedom. And if you’re rolling your eyes? Good. That means you haven’t lost your capacity to be moved by something that doesn’t make you money.
Ian Esche
November 30, 2025 AT 02:08Privacy coin? More like a tax evasion tool for criminals. The U.S. government didn’t kill CloakCoin-its own incompetence did. No innovation, no upgrades, no real utility. Just a bunch of basement-dwellers staking pennies because they don’t know any better. If you’re still holding this, you’re part of the problem. Move on. Invest in something that actually builds.
Christina Oneviane
December 1, 2025 AT 08:39Oh wow, so you’re telling me the only people left are the ones who bought in at the peak and now live in their parents’ basement, staking CLOAK like it’s their emotional support asset? Congrats. You’ve turned financial independence into a performance art piece. I’m not even mad. I’m just… impressed. The dedication is almost poetic. In a world of NFT monkeys, you chose to worship a ghost coin. You win. You’re the last true believer. Now go cry into your ENIGMA node.