Myriad at $1 would put the marketcap at about the same level as digibyte. Considering digibyte is basically a myriad clone but with poorly selected (imo) block size and time parameters, no auxpow on Sha and scrypt so no leveraging the two most massive networks, and it had a premine, then yes, I think it's possible.

This isn't a feature I've heard of for any coin, but assuming you're distributing to fairly technical audience, then you could send coins to an address, then encrypt the private key using gpg or openssh or something.