Metaverse’s Sandbox Pre-Empts $133M Token Unlock with 60M SAND Movement
In the buildup to a major $133M token release on August 14th, the Metaverse’s Sandbox platform shows some strategic shifts in token management. Here’s a deeper dive into the matter:
August’s Tumultuous SAND Token Trends
The Sandbox’s native currency, SAND, witnessed a 4% dip this August. Meanwhile, significant activity was observed with the Sandbox Genesis smart contract dispatching 60M SAND tokens. This movement, as evidenced by Etherscan, indicates early unlocking actions, potentially to stabilize the market dynamics.
Monday’s Unlock: The Big Picture
On the horizon is a massive release of 332M SAND tokens, equivalent to a staggering $133M. A glance at CoinGecko reveals that, as of now, SAND’s 24-hour trading volume hovers around $74.9M. This huge influx represents more than 16% of the currently circulating SAND supply, making it a pivotal event for traders and investors alike.
Inside the Early 60M SAND Movement
Delving deeper into last week’s 60M SAND transfer, sources like Etherscan confirm this early unlocking process. Sandbox’s community figure, known as Uncle Grumpy in the Discord channels, mentioned that this move was strategized to “not shock” the ecosystem, thereby hinting at a controlled approach to market integration.
How Token Unlocks Impact The Market
Generally speaking, token unlocks can bear a downward pressure on the coin’s value. They reintroduce previously held-back liquidity, often benefiting core project members and initial investors. In this scenario, Sandbox will introduce $133M worth of SAND into the open market.
Breaking it down further, data from TokenUnlocks suggests:
- 50% of these tokens are reserved for the Sandbox team and company reserves.
- Advisors for the Sandbox will get tokens valued at approximately $15M.
- The remaining tokens are earmarked for those who played a role in SAND’s strategic and seed sales, granting them selling rights for the first time.
A Historical Perspective on SAND’s Market Behavior
While the February unlock of SAND successfully navigated against bearish trends, August doesn’t show a similar trajectory yet. The coin has dwindled by 4% since the start of the month, averaging a value of around 40 cents in recent days. In a reminiscent scene, last year’s August saw a drop by over 20% within six days post the unlock.
Closing Thoughts
As the Metaverse’s Sandbox girds itself for this significant token release, market stakeholders will keep a close watch. While the early unlock aims to cushion the potential market impact, only time will tell how this strategic move plays out in the broader crypto landscape.
