ZCAT gained 35.4% over 24 hours, driven by attention to its Zcash reward system. The token has distributed approximately 2,320 ZEC, valued at roughly $2.8 million, to eligible holders.
How the Reward System Works
ZCAT imposes a 3% fee on all token transfers. The majority of collected fees are used to purchase ZEC, which is then distributed among holders who maintain at least $20 worth of ZCAT in their wallets.
According to project figures, more than 470,000 individual payouts have been made. However, this count reflects individual transactions rather than unique holders, as the same wallet may receive multiple payments.
Funding and Sustainability Concerns
The reward system is funded entirely by ZCAT transaction activity, not by external revenue sources or business profits. This structure means that reduced trading volume could limit future reward distributions. Additionally, holders finance the system through the 3% transaction fee they incur.
Price Volatility
At the time of reporting, ZCAT traded near $0.1515, with a market capitalization around $150 million. The token recorded approximately $40.9 million in 24-hour trading volume.
ZCAT experienced significant price swings within the 24-hour period, trading between $0.09037 and $0.1755. Buyers who purchased near the high end saw double-digit declines before the price recovered.
As a newly launched token with only days of trading history, ZCAT lacks sufficient data to assess long-term demand. Continued reward distributions depend on maintaining active trading in the token.
