A Solana Cat Memecoin has paid out more than $3 million in Zcash (ZEC) to the holders of this coin, making the rare distribution mechanism a huge payday as the tokens ZCAT and ZEC have risen sharply. The Anonymous Cat token with the ticker ZCAT relies on transaction fees to reward holders with Zcash.
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Whenever the token is sold, ZCAT charges a tax of 3%. The fees that are generated from the sales are mostly used to reward the owners who hold more than $20 worth of ZCAT.
Thus far, about 2,320 ZEC have been disbursed, equivalent to roughly $2.8 million at current prices in the early morning hours of Monday, Asia time. The recent appreciation in the price of ZEC has also boosted the value of the rewards for ZCAT holders.
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Solana Cat Memecoin Turns Transaction Fees Into Zcash Rewards
The reward mechanism of Solana Cat Memecoin is not the same as any investment that creates income. The rewards of ZEC are earned by other people’s purchases, sales, and transfers of the ZCAT.
In other words, the payment mechanism will depend greatly on the transactions involving the token, and should they be reduced, then the amount of ZEC distributed will reduce accordingly.
The value of the token has also been impacted due to the impressive surge of Zcash. Over the last 12 months, ZEC has surged over 2,300% and is now trading at $1,180 at the time of writing, owing to rising interest in privacy-oriented crypto assets.
Zcash enables users to protect their privacy by shielding key information related to transactions such as the identity of the sender, receiver, and quantity. The recent surge in Zcash price has thus raised the prospects for privacy-oriented tokens.
Another way to invest in Zcash in a more traditional manner is through a financial instrument that has been listed on the New York Stock Exchange Arca. Grayscale has listed an ETF that tracks the price of spot ZEC on NYSE Arca.
ZCAT Price Rises Alongside Zcash
Solana Cat Memecoin has also been a beneficiary of the uptrend in ZEC. At the time of writing, ZCAT was trading at $0.132, making its market cap around $124 million. It had a daily trading volume of $22 million.
Over the weekend, ZCAT made an attempt to break above the $0.19 level but soon met rejection. The token had seen a fall over the past few hours of Monday’s trading.
ZCAT is listed against ZEC via StonkFun, which is the Solana launchpad where new projects can pair their tokens against something other than SOL or stablecoins.
Cat Memecoins Continue to Expand
The emergence of this Solana Cat Memecoin has been fueled by the growing trend in the crypto world where tokens featuring cats have become popular. Such projects usually depend on community support through social networks and speculation instead of fundamental business ideas.
A good example of that would be Cash Cat, which was created thanks to the emergence of Robinhood Chain in July.
An individual is said to have converted $800 to over $1 million in a single week, and memecoins were responsible for much of the activity on the Robinhood Chain. Pons was even able to mint more than 22,000 coins within a single day.
With regard to the Solana Cat Memecoin, future rewards for Zcash will rely on whether there is activity on ZCAT. If there is no activity anymore, it means the rewards may decrease.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
