The metaverse platform and its associated cryptocurrency, The Sandbox (SAND), are set to unlock a significant quantity of SAND tokens today, and prices have already begun to decline.
Today, it is planned for 372.5 million SAND tokens to be released into the circulating supply. Here are the details…
Unlock process begins for Metaverse coin
Unlock events in the cryptocurrency market are drawing significant attention. Recently, The Sandbox (SAND) is scheduled for an unlock event. The unlocking, set for today at 11:00 Turkish time, will release approximately 12.4 percent of the total supply into the market, thereby increasing the circulation of a considerable amount of coins.
Based on the current prices, the value of the tokens to be unlocked is approximately $250 million. The current supply of circulating unlocked SAND tokens is 1.7 billion, which constitutes about 56 percent of the total 3 billion supply. Consequently, its market cap stands at $1.18 billion.
Token unlocks, which involve releasing previously locked assets into the cryptocurrency market after a specified period, are a process we’ve covered at Metaverseplanet.net. This mechanism is intended to align the incentives among all stakeholders. However, it frequently leads to short-term market volatility and declines in price. On February 13, Lookonchain disclosed some specifics regarding the tokens of the Metaverse platform.
Retail investors are left with very few tokens..
The Sandbox’s token release program is scheduled to conclude in February 2025 with the distribution of the last of its 3 billion tokens. This timeline indicates that four more unlock events are on the horizon: in August, February 2024, August 2024, and February 2025. Aside from today’s unlock event, an additional 1 billion SAND tokens are set to be released over the next two years, potentially exerting significant pressure on the token’s price.
As with many recent crypto projects, The Sandbox’s token economy is significantly oriented towards its team and investors. Over 40 percent of the tokens are allocated for the team, foundation, and advisors. Furthermore, more than 20 percent have been distributed through seed and strategic sales.
An additional 26 percent is earmarked for reserves, leaving a relatively small portion for individual investors. An on-chain analyst noted, “The last 2 SAND unlocks were followed by a decline in the SAND price,” suggesting a recurring pattern.
There was a price drop
Currently, the price of SAND has decreased by 3 percent. It dropped from $0.69 to $0.65 over the course of the day. At the moment, it is trading at $0.67. Additionally, SAND has experienced a nearly 7 percent decline in the past week amid a broader market downturn.
Experts suggest that the unlocking of the token could lead to a decrease in SAND prices to support levels around $0.60. The Metaverse coin is now down 92 percent from its November 2021 peak of $8.40. Meanwhile, earlier this month, The Sandbox entered into a Metaverse collaboration agreement with the Saudi Arabian Digital Government Authority (DGA).
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