Pirate Chain (ARRR) Explodes 62%: The Best of Zcash and Monero Combined?

Little-known privacy coin, Pirate Chain (ARRR), went on a rapid 62% surge early on Sunday morning, fresh off the heels of its first block reward halving.

Pirate Chain runs its own customized blockchain on the Komodo (KMD) platform – which itself is backed up on the Bitcoin (BTC) blockchain every ten minutes. Since Komodo is a fork of Zcash, that too gives Pirate Chain all the privacy benefits of Zcash.

But according to Pirate technical documents, those benefits come in a more concentrated form. Apparently the option to use non-private addresses on Zcash opens up unnecessary security holes, therefore Pirate has opted to go full private.
The sudden surge by the ARRR coin has been building for the past week, during which time its value has more than trebled.

Pirate Chain Price – ARRR/USD

From Sunday morning’s low of $0.179338, the ARRR valuation shot up to $0.291145 within just a few hours. That marked 62% gains at the peak of the surge, which soon gave way back to the $0.22 range.

The ARRR coin is listed on just a handful of small exchanges, and recorded an average volume of around $60,000 across the day. Most of that came from the Graviex exchange, where ARRR/BTC suddenly exploded, accounting for nearly a third of all trades on the entire platform.

The project launched in late 2018, and has CoinMarketCap data going back to late May, just over a week ago. In that time the coin has increased to the tune of 217%.

A product of making it onto the global display window that is CoinMarketCap in the first place? Maybe. But there’s more going on aboard the Pirate Chain this week too.

Block Reward Halving

Many point to Bitcoin’s 10x surge during 2016’s block reward halving as proof that reducing miner rewards results in higher valuations. And some expect the same of Litecoin when it reduces its block rewards sixty-four days from now.

Pirate Chain’s surge over the past week does coincide directly with the halving of its block rewards. Basic crypto reasoning suggests the 50% decrease to the rate of inflation results in a perceived increase to the value of the coin in question.

Unfortunately, not every coin pumps on the reduction of its block rewards. Ethereum did increase by around 50% during the month of its own ‘halvening’, but gave most of those gains away soon afterward.

Litecoin is being tipped to double by the time its halvening gets here. Bitcoin multiplied by ten, and this week, Pirate Chain trebled. The stats would suggest there’s money to be made come halving time, but success appears to vary.

Privacy and zk-SNARKs

The Pirate Chain blog has some interesting comparison articles pitching its own tech muscles against the likes of Monero and Zcash. Obviously those articles should be taken with a pinch of salt, but they make for interesting reading.

Monero (XMR) and Pirate Chain differ in their core tech – Monero uses CryptoNote, while Pirate Chain uses zk-SNARKs (zero-knowledge succinct non-interactive arguments of knowledge), pioneered by Zcash, and used subsequently on Komodo.

A Monero developer once openly stated that zk-SNARKs are better at producing pure untraceability that Monero, but with a caveat. Monero’s Riccardo Spagni said:

“There absolutely are better products! MimbleWimble provides significantly better scaling properties than Monero, and ZCash’s zkSNARKs provide much stronger untraceability characteristics than Monero (but a much smaller privacy set and much higher systemic risks).”

Pirate also looks to differentiate itself from Zcash by offering strict privacy, as opposed to optional privacy. Pirate utilizes TOR, and like all Komodo-based projects, is secured from 51% attacks by being backed up on Bitcoin every ten minutes.

As mentioned in recent coverage on Komodo, if the DEX being built by the Komodo team goes ahead, it would open up its progeny coins like Pirate Chain to more mainstream exposure. Check out Blockchain Gaming: Komodo (KMD) Up 25% as Komodore64 Virtual Console Nears for more.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Charts via CoinMarketCap.

Greg Thomson is a freelance writer who contributes to leading cryptocurrency and blockchain publications like CCN, Hacked, and others.