Darkcoin Price Falling

Journalist:
June 9, 2014

The Darkcoin price skyrocketed on the eve of the masternode hard fork, rising more than 2000% in a month. However, recently the Darkcoin price has experienced a steady downswing. Is this price correction temporary, or is it a sign that investors have lost confidence in the value of Darkcoin’s anonymity?

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Darkcoin Price Falling

[dropcap size=small]D[/dropcap]arkcoin offers a rare commodity to consumers: privacy. Through the use of a feature called DarkSend, users will be able to send and receive money anonymously. However, DarkSend has not been fully developed yet. Developers have been slowly preparing to implement it during a closed-source beta period over the past several months. As features have been implemented, investors have gained increasing confidence in the long-term viability of the coin, causing Darkcoin’s price to rise more than 2000% from less than $.75 in late April to around $15 shortly before the hard fork designed to implement masternodes, an integral feature to Darkcoin’s mode of anonymity.

As sometimes happens during coin updates, the masternode hard fork caused a few issues. Some masternodes were not processing transactions correctly, and the network began creating spontaneous forks, causing panic among Darkcoin holders. Because of the fork issues, exchanges had to halt trading for several hours. Investors then began panic-selling their holdings, which caused the Darkcoin price to plummet.

Once Darkcoin’s developers had corrected the problem and released an updated Darkcoin wallet, investors regained confidence and the Darkcoin price quickly rose and eventually surpassed the $15.50 mark. Alongside the individual coin price, Darkcoin’s market cap also increased to a new high of nearly $67,500,000.

Taken from CoinMarketCap.com

However, since June 2 the Darkcoin price has been trending downwards. According to CoinMarketCap, Darkcoin is currently trading at an average of $9.61 across all major exchanges. There is no obvious reason for this price decline, although it is a safe bet that many people who invested in Darkcoin when the price was low decided to sell at least a portion of their holdings at a profit rather than risk another rapid decline.

Will the Next Update Affect the Darkcoin Price?

Developer Evan Duffield had initially planned to release the next Darkcoin update on June 18. However, he recently stated that he was “feeling rushed,” so he decided to push back the release date to June 27. After watching the Darkcoin price rise so rapidly before the implementation of the masternode hard fork, speculators must be wondering how the next Darkcoin update will affect the Darkcoin price. Though not as impressive an update as the previous one, this update will double masternode payments from 10%-20%, giving investors incentive to buy more coins and whales even more incentive to hold onto those they already have. Based on the enthusiasm regarding last update, you should expect Darkcoin’s price to rise shortly before the next update on June 27. Of course, it is important to remind that the price volatility will depend on the success of the update.

If you are considering investing in Darkcoin, now might be the right time, because the price may not fall this low again in the near future. In addition to the next update on June 27, Evan Duffield plans on releasing a major update in mid-July that will purportedly improve Darkcoin’s anonymity features and reduce transaction restrictions when sending money with DarkSend.

Disclaimer: The author has invested in Darkcoin occasionally, but does not currently have any DRK holdings.

Last modified (UTC): June 9, 2014 10:56

Tags: darksend
Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.