Cloak Protocol ($CLOAK) is a new DeFi cryptocurrency platform that aims to provide more privacy and security to users. By utilizing zero-knowledge protocols and smart contracts, this platform ensures that users can conduct transactions without sharing any confidential information.
With $CLOAK, the native token, users can get decision-making power in this ecosystem and stake the token for passive income. Currently, the $CLOAK token is available to purchase on presale. Our guide will show users how to buy Cloak Protocol on presale and provide a detailed review of this new platform.
Cloak Protocol Crypto: What is It?
While new blockchains aim to offer more autonomy and power to users, there are always problems related to privacy. A truly decentralized blockchain ensures that decision-making power and control do not lie in a few individuals’ hands.
Thus, Cloak Protocol has released its DeFi (Decentralized Finance) platform, which aims to distribute power and offer privacy and security to users. One of the key decisions made by Cloak Protocol was to build its network on the Ethereum blockchain.
This particular blockchain has faced backlash due to the high fees it generates or the low throughput and transactions it can handle. However, Ethereum was one of the first crypto blockchains to deploy smart contracts, which sets up binding contracts between two parties.
Due to this network’s high computing power, it secures each and every transaction, making it safe to use. Thus, Cloak Protocol is based on this network and has also created its own native cryptocurrency, $CLOAK.
This ERC-20 token will be used to govern the community, offer voting rights, and staking benefits to token holders.
Cloak Protocol: Key Components
Before learning more about the presale or how to buy $CLOAK, it is important to discuss the key elements of this cryptocurrency platform. Let’s look at some of the use cases of the Cloak Protocol and how it offers higher privacy and security to users.
Zero-Knowledge Proofs Protocol
Since one of the main promises of Cloak Protocol is to offer private and secure transactions, it uses zero-knowledge protocols on the platform. A zero-knowledge proof is a method through which an activity can be proven without actually revealing what the activity is.
This process involves a prover, a verifier, and a challenge, enabling people to prove their knowledge or ownership without giving away any further details. This concept is used on various blockchain protocols to protect the user’s identity during transactions.
On Cloak Protocol, when a user transfers assets, the system generates a random hash, ensuring the transaction’s correctness. The network verifies this and thus completes the transaction successfully.
Voting Decisions through a DAO
Another key component of the Cloak Protocol is its governance mechanism. As mentioned above, Cloak Protocol aims to involve all community members to have an active say in deciding the future of this particular organization.
This can be done by holding and staking $CLOAK within the ecosystem. According to the Cloak Protocol whitepaper, $CLOAK is a governance token that can be leveraged to access voting rights. The platform follows an ERC-20 governance model, where $CLOAK can be staked in exchange for voting rights.
However, Cloak Protocol ensures that long-term token holders have a majority of the say through the platform’s DAO (Decentralized Autonomous Organization). This step has been taken to prevent short-term token holders from making opportunistic decisions, which will benefit them for the time being but will affect the community’s overall growth.
Setting up this governance structure will allow Cloak Protocol to stay decentralized and community-driven. Users can vote on platform enhancements and updates to maintain and grow the ecosystem. Furthermore, staking tokens also shows the commitment of members, which can help build a sense of community among $CLOAK holders.
Stake $CLOAK to Earn Rewards
Apart from getting access to the platform’s DAO, staking $CLOAK has other benefits as well on Cloak Protocol. The platform aims to offer passive income to those that stake $CLOAK tokens.
Being a new token, there is no guarantee that $CLOAK will offer returns in the long term. To attract investors to the project, Cloak Protocol has introduced staking benefits. On the platform, Cloak Protocol will generate revenue by collecting transaction fees.
A portion of the fees collected will be distributed among staked token holders. Moreover, the proportion of passive income you earn depends on the staked amount. Therefore, holders who stake a larger amount will reap the highest benefits.
Thus, $CLOAK aims to become one of the 15 highest staking crypto through the passive income it will provide.
Is CLOAK Token a Worthwhile Investment?
Before investing in any new cryptocurrency, it is important to find out whether it may be a worthwhile investment. While we have learned about the components of this ecosystem, it is time to look at the factors which may determine whether Cloak Protocol is a good cryptocurrency to purchase:
Available at Low Prices
$CLOAK is currently available to buy during its early presale round. Presale tokens can be a great investment since the prices are very low. However, since there is little historical data on the coin’s performance, this could also be a risky investment.
Therefore, investors should do their own research to determine the level of risk they are comfortable with. One of the best penny cryptocurrency tokens to buy right now, $CLOAK, is priced at just $0.0394.
Therefore, investors could potentially enter this project in the presale round before the token lists on cryptocurrency exchanges in the coming months.
Giveaways
A strategy that new cryptocurrency projects use to attract new investors is by hosting regular giveaways. This could be a great way to earn free rewards and tokens by engaging in the platform’s social media or sharing it with others.
Recently, Cloak Protocol collaborated with Top Tier Signals to offer a premium pass to their signals platform. This pass is valued at $300. Furthermore, Cloak Protocol also distributed $100 worth of $CLOAK to one entrant that shared the Tweet, liked the post, and tagged three friends.
Similarly, Cloak Protocol will offer the first 1,000 entrants on its Discord and Telegram channel with free airdrops. By following the platform on these pages, you can keep yourselves updated of the next giveaways and win free tokens and other exciting prizes.
Good way to Diversify your Portfolio
Since the end of 2021, the cryptocurrency markets have been facing bearish momentum. After the economic crisis that unfolded following the pandemic, all financial markets, including the digital assets space, have corrected.
As some of the best cryptocurrency tokens, including Bitcoin (BTC) and Ethereum (ETH), tumbled, the rest of the markets followed suit. As an alternative, investors have been looking to invest in new projects that could provide long-term value.
Cloak Protocol could be a potential way to diversify your portfolio since it is a presale token that offers unique solutions in the DeFi space. Those that value privacy and complete decentralization may wish to be a part of this community.
In recent times, other presale tokens have offered huge return on investments (ROI), another factor making $CLOAK a good investment.
What makes Cloak Protocol Unique?
In an effort to privatize transactions, Cloak Protocol uses zero-knowledge protocols to hide the user’s information. However, this is a practice that multiple blockchain systems practice.
Cloak Protocol allows members to make partial deposits and withdrawals on the ecosystem to differentiate itself from other cryptocurrency platforms. According to the platform, it prefers allowing users to transact a large number of small denominations rather than a small number of large denominations.
This process makes it difficult for third parties to track the movement of assets on the blockchain. Thus, third parties cannot link the assets back to a certain individual, protecting the user’s identity. Furthermore, Cloak Protocol also charges a 0.5% fee on deposits but does not charge any withdrawal fees. A portion of the fees is distributed to the staked token holders within the ecosystem.
Who is behind Cloak Protocol?
Similar to multiple new crypto projects, the developers and creators of the Cloak Protocol project have chosen to stay anonymous. However, the platform regularly updates its socials and is active across Twitter, Discord, and Telegram.
Cloak Protocol Roadmap
The first phase of the platform roadmap was to focus on the research and development of the technical architecture. This included the deployment of smart contracts on the blockchain.
Currently, Cloak Protocol is in its second roadmap phase. The main aim of phase two is the presale of $CLOAK and developing the user interface and wallet integration. In the future, the platform will begin beta testing of the user interface and conduct security and code audits.
Cloak Protocol will release the governance mechanism and introduce the staking platform down the road. Another upcoming event is the exchange listing, which is expected to occur after the presale ends.
For the long term, Cloak Protocol will focus on entering in key partnerships with other platforms, expanding their ecosystem, and building a thriving community.
Cloak Protocol Presale
After reading all the features and use cases of the Cloak Protocol, interested parties can be a part of this community by entering the presale. At the time of writing, $CLOAK is priced at just $0.0394 per token.
However, the launch price is set at $0.0986 per token. This equates to a price jump of more than 150%. Therefore, by entering the presale right now, users will be guaranteed a 150% price increase during the time of the exchange listing.
Since the cryptocurrency presale started, $CLOAK has raised nearly $10K. The platform has also mentioned that it intends to list the token on Uniswap – one of the world’s largest decentralized exchanges (DEXs).
This DEX has over 30 million global users, which could be a key factor in increasing the token’s long-term trading volume.
How to Buy CLOAK Tokens
Interested in investing in this DeFi-based privacy solution? Our guide will now show users how to buy CLOAK tokens in just a few simple steps:
Step 1: Get a Cryptocurrency Wallet
To get started, users must set up a cryptocurrency wallet. Cloak Protocol’s presale can be accessed with some of the best cryptocurrency wallets, such as MetaMask. The platform also supports popular wallets such as Trust Wallet, Wallet Connect, and Binance Wallet.
Choose your preferred crypto wallet and download the extension on your browser. Alternatively, download the app if you are using a smartphone.
Step 2: Buy Ethereum Tokens
Being an ERC-20 token, $CLOAK can be swapped with Ethereum (ETH) tokens. If you do not hold any Ethereum in your wallet, purchase tokens from suitable cryptocurrency exchanges, and transfer the holdings to your crypto wallet.
Step 3: Connect your Wallet with the Presale Platform
Visit the Cloak Protocol website and click on ‘Buy Now.’ The platform will then let you choose a compatible wallet.
Click on the wallet you hold, and follow the instructions on-screen to connect your wallet with the presale.
Step 4: Buy $CLOAK
Once the wallet is connected, you can simply enter the amount of ETH tokens you wish to swap for $CLOAK. After typing out the amount, click on ‘Buy Now.’ A pop-up will appear on the screen, showing the amount of $CLOAK you will receive for the transaction.
Click on ‘Confirm’ to authenticate the transaction.
Conclusion
In our how to buy CLOAK guide, we have shown users how to invest in this DeFi cryptocurrency in a few simple steps. More importantly, we have discussed the platform’s features and how it protects the user’s privacy.
By joining the Cloak Protocol presale, users can stake tokens to be a part of the governance DAO and earn passive income. Currently priced at just $0.0394, $CLOAK will jump by 150% by the end of the presale round.