Cloakcoin was first launched in June 2014. After skyrocketing initial success, the project sank among rumours of a pump & dump scam and lack of development of promised features. The project was eventually abandoned by its creators.

On the 14th October 2014, a new team of developers composed from members of the community, and with C4shm3n as their leader took over the project and set out to accomplish what the previous team failed to do: a fully anonymous trustless cryptocurrency. Trustless is defined as not having the need to trust a third party to provide secure and 100% private transactions. Has from 2018 the CloakCoin project is managed by Lasvegas83 and development is carried out by two developers: Deepend and Anorak.

Cloakcoin is a open-source cryptocurrency and worldwide payment system. By using a algorithm that provides total privacy, Cloakcoin aims to enpower people with financial freedom and data privacy in a simple, practical, economical and virtually instantaneous manner.

Cloakcoin is a dual PoW/PoS (Proof of Work, Proof of Stake) coin, which is now in the Proof-of-Stake (interest bearing) stage.