The metaverse platform and metaverse coin The Sandbox (SAND) will unlock a large number of SAND tokens today and prices are already starting to drop. Today, 372.5 million SAND tokens are planned to be added to the circulating supply. Here are the details…
Unlock process begins for Metaverse coin
Unlock events in the cryptocurrency market attract attention. Recently, The Sandbox (SAND) will be unlocked. With the unlocking that will take place today at 11:00 Turkish time, approximately 12.4 percent of the total supply will enter the market, thus a sizable amount of coins will be in circulation. At current prices, the value of the token lock is approximately $250 million. The current supply of unlocked circulating SAND is 1.7 billion tokens, representing about 56 percent of the total 3 billion. As a result, its market cap is $1.18 billion.
cryptocoin.com As we reported, token unlocks are designed to release locked assets into the crypto market for a specified period of time. This process aims to harmonize incentives for all stakeholders. However, it often causes short-term volatility and price drops. On February 13, Lookonchain released some details about the tokens of the Metaverse platform.
Retail investors are left with very few tokens.
The Sandbox authorization program ends in February 2025, when the last of the 3 billion tokens is released. This means that four more unlock events are planned for August, February 2024, August 2024 and February 2025. Excluding today’s unlock, another 1 billion SAND tokens will be released in the next two years. This can have a serious impact on prices.
Like many new crypto projects, The Sandbox token economy is highly team and investor focused. More than 40 percent of the tokens are reserved for teams, foundations and advisors. Additionally, more than 20 percent went to seed and strategic sales. Moreover, 26 percent will remain in reserve. So there is little left for individual investors. “The last 2 SAND unlocks were accompanied by a drop in SAND price,” said the on-chain analyst. History seems to repeat itself.
There was a price drop
Currently, the SAND price is down 3 percent. It fell from $ 0.69 to $ 0.65 during the day. At the time of writing, it is trading at $0.67. Also, SAND has lost nearly 7 percent last week amid a wider market pullback. According to experts, unlocking the token could cause SAND prices to drop to support levels around $0.60. The Metaverse coin is currently down 92 percent from its November 2021 high of $8.40. On the other hand, The Sandbox signed an agreement on Metaverse collaboration with the Saudi Arabian Digital Government Authority (DGA) earlier this month.
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