The ZCAT cryptocurrency posted a 35.4% price spike within 24 hours, attracting investors with an unusual reward distribution scheme in Zcash. According to AMBCrypto, approximately 2,320 ZEC worth $2.8 million has been distributed among token holders since the project launched. However, the system requires active trading of ZCAT on the secondary market — it is precisely this trading activity that generates funds for reward payouts.
The mechanism works as follows: every ZCAT transfer incurs a 3% fee, the majority of which is used to purchase ZEC on the open market. The accumulated Zcash is then distributed among ZCAT holders who meet the minimum requirement — a portfolio must contain at least $20 worth of the token. The project has recorded over 470,000 payouts, although this figure reflects the number of individual transactions rather than unique holder addresses. At the time of writing, ZCAT was trading near $0.1515 with a market capitalization of approximately $150 million and a 24-hour trading volume of around $40.9 million.
A critical feature of the model is that rewards are funded exclusively by trading activity in ZCAT itself, rather than by revenues from any business operations or external sources. This means that as trading activity weakens, the volume of funds available for payouts shrinks accordingly. Furthermore, holders themselves finance the reward system through the 3% fee on every transaction. The project has existed for only a few days, so there is insufficient data to assess long-term demand. ZCAT's volatility has been substantial — over 24 hours the price swung between $0.09037 and $0.1755, indicating a high risk of sharp reversals. Investor interest is driven primarily by the rally in Zcash itself, which recently broke above $1,200, boosting attention toward any project associated with the cryptocurrency.
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This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.