2 months ago 2 min read

As the $250M Token Unlock Approaches, The Sandbox's (SAND) Price Declines

Sandbox-SAND-PriceAnalysis-Crypto-CryptoAnalysis

Today, metaverse platform The Sandbox will make a large number of SAND tokens available, and prices have already started to drop.

The Sandbox will introduce a new block of tokens to the market on February 14. Furthermore, the circulating supply of SAND tokens will increase by 372.5 million.

This amounts to about 12.4% of the entire supply, making it a sizable portion. The token unlock is worth about $250 million at the current pricing.

SAND's current unlocked circulating supply is 1.7 billion tokens, or roughly 56% of the entire 3 billion. Its market capitalization is $1.18 billion as a result.

Over a predetermined amount of time, token unlocks are intended to unleash locked assets into the cryptocurrency market. Aligning incentives for all stakeholders is the goal of this procedure. But it frequently results in price drops and brief periods of instability.

This is how prior Sandbox unlocks have gone.

Sandbox Tokenomics

When the final 3 billion tokens are distributed in February 2025, the Sandbox vesting timetable will have come to an end. This indicates that there will be four additional unlock events in August, February, August, and February of the following years.

A further 1 billion SAND tokens, excluding today's unlock, will be released over the following two years. Prices may be severely impacted by this.

The Sandbox tokenomics are very team- and investor-oriented, like many recent crypto initiatives. The team, the foundation, and the advisers will each receive more than 40% of the tokens. Furthermore, more than 20% was spent on strategic and seed sales, and 26% was placed in reserve, leaving very little for small-scale investors.

History appears to be repeating, as the on-chain expert highlighted that "the last 2 unlocks of SAND were accompanied by a decline in the price of SAND."

Price Decreasing

SAND prices are down during the Tuesday morning Asian trading session, as was to be expected. As of the time of publication, the token's price has fallen 3.6% from an intraday high of almost $0.70 to $0.675.

Additionally, SAND has decreased by about 7% over the past week amid a general market decline.

The unlocking of the token might cause SAND prices to drop to support levels of $0.60. When compared to its top price of $8.40 in November 2021, the Metaverse coin is currently down 92%.

The Sandbox and the Saudi Arabian Digital Government Authority (DGA) have a collaboration agreement on the Metaverse that was inked earlier this month.

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