ZCAT crypto rallies 35% after reported $2.8M in ZEC rewards

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. ​