The price of pirate chain (ARRR) cryptocurrency has gained more than 14% since the start of the month, but it remains down by 72% since it reached an all-time high in April. Is the market starting to rebound after the recent cryptocurrency crash?
In this article, we take a look at the main features of the Pirate Chain protocol and predictions for the direction of the ARRR price in the future.
Pirate chain focuses on anonymous, private transactions
What is pirate chain? A privacy coin, it was launched in August 2018 by several developers from the Komodo blockchain community on the Discord messaging platform. More than 100 contributors have worked on the development of pirate chain since the launch, providing coding, partnership development, marketing and other skills.
Komodo is a fork or spin-off of the Zcash project, which is itself a hard fork from the Bitcoin blockchain. Komodo’s platform uses a delayed Proof of Work (dPoW) algorithm to provide a security service for blockchains. Pirate Chain brings together dPoW, zero-knowledge proof (zk-SNARKs) transactions from the zcash (ZEC) cryptocurrency and enforced private transactions from the opaque Monero blockchain.
With zk-SNARKs, the transaction data does not need to be viewable on public ledgers. This makes 100% of the transactions anonymous, unlike other coins in which privacy features are optional.
According to the crypto’s white paper: “All pirate chain transactions are private by default. This alleviates the fungibility problems that many cryptocurrencies with optional privacy introduce into their protocol. This complete privacy protocol provides users with more assurance that no authorities are able to claim that user’s funds are ‘tainted’ due to previous transactions, now and in the future.”
The cryptocurrency is fully decentralised and shields peer-to-peer transactions. According to the developers, using dPoW protects pirate chain from 51% attacks – which occur when malicious miners take control of more than 50% of a network’s mining hash rate. Each block is recorded on the Komodo and Bitcoin blockchains, and an attack would have to affect the hashrates of Bitcoin, Komodo and Pirate all at the same time.
“This makes security against double spends and hostile takeovers nearly impossible if not impossible altogether,” according to the pirate chain website.
User privacy is at the core of web 3.0, the next-generation Internet, which aims to hand control of personal data back to the individual user rather than large corporations, which can make large sums of money from selling that data to third parties.
The ARRR token launched without pre-mining any coins or launching an initial coin offering (ICO). There are currently 182.6 million coins in circulation, out of a maximum total supply of 200 million. It has a market capitalisation of around $885m, ranking it 213 in the list of cryptocurrencies, according to CoinMarketCap.
Pirate chain miners earn rewards of 32 ARRR for verifying blocks. The block rewards halve every 270 days and the next halving is due around 30 August. The block reward will gradually decline until it reaches 1 ARRR in 23 years.
Pirate chain was added to the Changelly Exchange in April and was listed on DigiFinex Global in late May. The developers have released an updated version of Treasure Chest, the main full-node wallet for the cryptocurrency, which users must upgrade to by 14 June to avoid incompatibility issues.
Pirate chain price analysis: ARRR attempts to rebound from the crypto crash
The ARRR price has moved in line with the broader cryptocurrency markets over the past year. It started 2020 at $0.02707, traded down to $0.01341 in March, and then trended higher throughout the rest of the year to reach $0.1733.
The price reached $0.33 in early April 2021, then soared to a record intraday high of $16.90 on 23 April. It quickly slumped to $5.36 on 30 April, found strong bullish impetus to move up to $9.19 on 10 May, but was unable to maintain the momentum and slipped back to $2.56 on 23 May.
The token has since regained some ground and has been trading between $4.06 and $6.69 so far in June. On 11 June, the ARRR price stood at $4.85.
After the recent volatility, where next for the ARRR cryptocurrency?
Pirate Chain price prediction for 2021, 2025 and 2030: will the price reach new highs?
The short-term outlook for pirate chain leans bearish, according to technical analysis from CoinCodex. There are 14 technical indicators giving off bearish signals, while 13 are bullish.
The 3-, 5- and 10-day simple and exponential moving averages are giving sell signals, while the weekly averages indicate the coin is a buy. The relative strength index (RSI) is neutral, while the stochastic RSI is giving a sell signal.
With the price around $4.85 at the time of writing, there was technical support at $4.54 down to $3.75, with resistance at $5.33 up to $6.12.
As regards the longer-term outlook, the ARRR coin price prediction from algorithm-based forecasting site Wallet Investor indicates that the price will rise from $5.341 at the start of July to $8.399 at the end of December. It projects that these gains will accelerate to $15.075 at the end of 2022 and then more than double to $35.029 by the end of 2025.
The forecast from Gov Capital puts the price at $5.288 at the start of July, doubling to $10.920 at the end of December, then rising further to $16.955 at the end of 2023. It estimates the price will double again by the end of 2025 to $34.450.
The Pirate Chain (ARRR/USD) forecast from DigitalCoin predicts a slower upward trajectory, with the price averaging $7.19 in 2021, $7.99 in 2022 and reaching an average of $14.06 in 2025. It estimates the coin will peak at $23.41 over the long term, averaging $21.42 in 2028.
CoinArbitrageBot predicts that the ARRR coin value will rise from $6.59 in 2021, $10.57 in 2022, $17.26 in 2023 and $27.94 by 2024.
The future of pirate chain will depend on the uptake of the privacy coin over alternative cryptocurrencies. Growing interest in anonymous transactions as cryptocurrency becomes more mainstream is expected to drive adoption of coins like monero (XMR) and pirate chain.
When you are deciding whether to invest in highly volatile assets like cryptocurrencies, it is crucial that you do your own research to decide if it is a good fit for your portfolio. Whether pirate chain is a good investment for you depends on your risk tolerance and asset allocation. You should make sure to never invest more than you can afford to lose.
Algorithm-based forecasting services predict that the pirate coin price will rise, potentially even doubling in the coming years, especially if the cryptocurrency markets recover and rally over the long term.
You can buy the ARRR token on cryptocurrency exchanges like Bilaxy, Changelly, CoinEx and DigiFinex. You should then transfer the token to a software wallet for secure storage. You can also transfer them to a hardware wallet for physical storage.
While ARRR is not available for trading on Capital.com at this time, you can follow our coverage of pirate chain news and price predictions to stay on top of the latest market developments.