The Sandbox Tokens Price Drops Following Token Unlocking


On August 14th 2023, The Sandbox released 332 million tokens. However, the release was not without its setbacks.

TL;DR:

  • The Sandbox released 332 million tokens on August 14, 2023, impacting its market dynamics.
  • The token unlock represented 16% of current supply, raising concerns about value impact; allocation included team, reserves, advisors, and seed sale participants.
  • Token unlock led to market pressure, causing a 2% daily drop and 2.2% weekly decrease; The Sandbox’s token value declined over 95% since 2021.
IMG Credit: Coin Market Cap

The Sandbox Releases 332 Million SAND Tokens

The Sandbox is a metaverse platform that enables users to create, share, and monetize their 3D voxel-based gaming experiences and assets using blockchain technology. To clarify, the utility of its SAND token establishes ownership and scarcity of in-game assets.

The anticipated token unlock saw the release of approximately 16% of the current circulating supply of The Sandbox’s SAND token. Therefore, with 2.83 billion tokens unlocked (constituting 79% of all SAND tokens) the market saw an influx of supply, raising questions about the potential impact on its value.

The unlocked tokens were distributed across several categories. Firstly, The Sandbox’s team received 71 million token. 96.8 million tokens went to the company reserve. Furthermore, advisors received 37.5 million tokens, and strategic sale buyers were allocated 24 million tokens. Additionally, 103 million tokens were unlocked for seed sale participants.

Market Impact and Future Outlook

Large-scale token unlocks, like the one executed by The Sandbox, often result in downward pressure on the market due to the sudden increase in supply. This is what happened with The Sandbox’s token value. Unfortunately, the token experienced a 2% drop from its daily peak. Additionally, a 2.2% decrease over the past week following the unlock.

The future of The Sandbox’s token remains uncertain as it grapples with a prolonged price decline. Once valued at $8.44 in November 2021, the SAND token has plummeted over 95%, currently trading at $0.3704. However, its competitor, Decentraland, with its MANA token, has faced a similar decline. 

In conclusion, The Sandbox’s token unlock and the sustained decline in its value reflect the evolving nature of the metaverse landscape. With broader implications for the market, the metaverse’s future trajectory remains uncertain as it grapples with shifting interests and challenges.

 


All investment/financial opinions expressed by NFTevening.com are not recommendations.

This article is educational material.

As always, make your own research prior to making any kind of investment.



Source link

Next Post

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended

Welcome Back!

Login to your account below

Retrieve your password

Please enter your username or email address to reset your password.

Add New Playlist