ZCAT crypto rallies 35% after reported $2.8M in ZEC rewards
ZCAT has attracted attention by sharing Zcash with holders, although a 3% fee on token transactions funds the payments.
ZCAT pumped 35.4% in 24 hours, as this crypto is attracting attention due to its promise of paying Zcash reward on ZCAT.
About 2,320 ZECs worth $2.8 million have been given out. But the catch is people need to trade and transfer ZCAT for those payments to be sent still.
How ZCAT’s Zcash rewards work
ZCAT charges a 3% fee whenever the token changes hands, and most of the money collected is used to buy ZEC, which is then shared among eligible ZCAT holders.
Wallets are said to need to hold at least $20 worth of ZCAT to receive the rewards.
The project figures show more than 470,000 payments have been made. But these numbers refer to individual payouts, not the number of people holding the token [the same wallet may have received several payments].
The arrangement gives people reasons to hold ZCAT, and it also connects the memecoin to Zcash, whose price recently went above $1,200.
The rewards are, however, funded by ZCAT activity, NOT by profit made from business, nor from any separate source of revenue. The value available for future awards could be diminished by lesser user activity.
A further consideration is the 3% charge. Every ZCAT transaction goes toward rewards, meaning holders finance the system in which they are rewarded.
ZCAT price records sharp swings
At the time of writing, ZCAT was trading for about $0.1515, equating to a market cap of around $150 million.
The tokens were in high demand; it recorded a trade of approximately $40.9 million US dollars in 24 hours. The price has also been fluctuating between $0.09037 and $0.1755 during the span of 24 hours.
That range illustrates how quickly conditions change. ZCAT rose from its daily low; however, buyers who bought near $0.1755 saw a double-digit decline shortly after, and before the price was able to recover again.
ZCAT has only existed for a few days, so it does not have a trading history long enough to judge long-term demand. Interest may be drawn by it sending out ZEC, especially since Zcash is doing so well, but to keep payments going, it needs ZCAT to keep trading too.
Final Summary
- ZCAT reportedly distributed 2,320 ZEC through a reward system funded by its 3% transaction fee.
- It gained 35.4%, although the wide daily range showed a high risk of extreme reversals.
