ZCAT Cat Memecoin Pays Out Nearly $3 Million in Zcash Rewards

The cat memecoin ZCAT has paid out nearly $3 million in Zcash to its holders, thanks to a surge in both tokens. The token charges a 3% tax on transfers, which is converted into Zcash and distributed to wallets holding at least $20 worth of ZCAT. With the recent price increase of ZEC, rewards for CAT holders have skyrocketed.

As of Monday morning in Asia, over 2,320 ZEC, worth approximately $2.8 million, has been distributed across more than 470,000 payouts. This unusual reward mechanism is fueled by trading activity on StonkFun, a Solana launchpad that allows newly created tokens to trade against other assets.

Notably, the rewards are not generated from a business or investment but rather from the buying, selling, and transferring of ZCAT. Therefore, if trading dries up, payouts will significantly decrease. The recent price surge of ZEC has been attributed to renewed demand for privacy-focused cryptocurrencies, with Zcash allowing users to hide transaction details.