Sandbox Set For $133 Million Token Unlock, A Bearish Trigger For SAND Price?
August 08 2023 - 5:00PM
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Decentralized gaming platform, The Sandbox is set to execute a SAND
token release valued at $133.86 million. According to data from
TokenUnlocks, Sandbox will release 332.55 million SAND tokens into
circulation on August 14, representing 16.16% of the token’s
maximum supply. New SAND Tokens In 2023 To Rise Over 700
Million With the upcoming SAND release, the total number of new
SAND tokens in 2023 is expected to rise to 705.3 million. This
latest unlock will add to the 372.75 million SAND released earlier
during the last token unlock in February. Based on more data
from Token Unlocks, the newly released tokens will be allocated to
various parties, including the Sandbox’s development team, project
advisors, strategic and seed investors, and the project’s
reserve. SAND functions as the utility token of the Sandbox
metaverse, serving as the platform’s payment medium and governance
token. According to its design, SAND is expected to undergo a token
unlock every six months until 2025. Currently, the number of
circulating SAND tokens is 2.05 billion, representing 68.6% of
SAND’s total supply. With the projected release on August 14, these
figures are expected to jump to 2.39 billion and 84.76%,
respectively. SAND trading at $0.40 on the daily chart | Source:
SANDUSD chart on Tradingview.com Related Reading: Massive Token
Unlock: Ripple Releases One Billion XRP From Escrow Potential
Impact of Token Release on SAND’s Price Token unlocks are common
events in the crypto space, usually accompanied by fears of a
bearish market. This is because the sudden introduction of massive
tokens to the market creates a higher supply-to-demand ratio, which
drives down asset prices. Looking at on-chain data, this is
one likely effect of SAND’s upcoming token unlock on its market
price due to declining network growth on the Sandbox platform.
Based on data from blockchain analytics firm IntoTheBlock, the
number of new addresses on Sandbox is down by 66.87% in the last
month, falling from a peak of 649 in July to its current value of
215. The continuance of this trend means Sandbox may lack the
necessary traction to counter the upcoming inflationary pressure,
which may ultimately lead to a fall in price. Source: IntoTheBlock
Related Reading: Aptos (APT) Gains By 10% Ahead Of July Token
Release Following SAND’s last token release on February 14, SAND’s
price movement was fairly positive, opening at $0.68 to trade as
high as $0.72 and close at $0.71. In the subsequent days, SAND
would record more gains, reaching a market value of $0.88 on Feb
20. While token unlocks are widely expected to precipitate
bearish pressure, their effects are still unpredictable. Investors
are advised to watch out for major developments on Sandbox
regarding network growth and whale movement. At the time of
writing, CoinMarketCap data shows that SAND is trading at $0.40
with a 0.62% gain on the last day. However, the token is down on
the weekly chart losing about 2.98% of its value. Featured
image from Binance Academy, chart from Tradingview.
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