This month, as it prepares for a Monday unlock event, the value of the SAND token, which is linked to the metaverse platform Sandbox, has decreased. More than 16% of the quantity of SAND tokens now in circulation will be made available to the market during the event.
Notably, the multisig Sandbox Genesis smart contract just saw the removal of almost 60 million SAND coins, as shown on the Etherscan block explorer. This action, which was taken a week ago, has been seen as a preventative effort to lessen any possible market shocks brought on by the unlocking procedure. This tactic, according to Uncle Grumpy, a well-known member of the Sandbox Discord group, aims to guarantee a more gradual transition.
Due to the introduction of previously constrained liquidity into the market, unlocking events, which are frequent in the cryptocurrency world, sometimes have a detrimental effect on token values. This extra liquidity results from planned token releases, which are often made available to investors and project insiders. More than 332 million SAND tokens, or around $133 million, are expected to be released into the market at the next unlock on Monday.
According to detailed breakdowns of the token allocation, the team and business reserve will get 50% of the unlocked tokens. Additionally, tokens worth around $15 million will be given to Sandbox advisers, with the remaining money going to those who bought SAND during the strategic and seed sales. These participants will be allowed to swap their SAND positions for the first time at this future event.
As of right now, SAND has a 24-hour trading volume of over $74.9 million, according on information from CoinGecko.
With a 4% decline in value since the beginning of August, the recent SAND token performance suggests a negative direction, in contrast to a significant exception in February when an unlock event did not follow the bearish trend. The token’s price has been around 40 cents for the previous week. Similar circumstances occurred in August of the year before, when an airdrop event resulted in a price drop of more than 20% within six days after the unlock.
The SAND token’s performance is being closely watched as the unlocking event draws near, reflecting the shifting dynamics of cryptocurrency markets and investor attitudes.