On the horizon is a significant event in the world of cryptocurrencies – a substantial token unlock for the metaverse platform, Sandbox. Come Monday, a whopping 332 million SAND tokens, equivalent to $133 million, will be freed up. As the 24-hour trading volume for SAND is currently around $74.9 million, according to CoinGecko, this unlock promises to shake things up.
Signs of the Unlock Already Surfacing
Interestingly, the signals of this impending unlock were observed a week prior, with a notable transfer of 60 million SAND tokens from the Sandbox Genesis smart contract. This was detected by the block explorer Etherscan, indicating the token unlock process had already commenced.
The slide in the value of Sandbox’s SAND token throughout this month could be a response to the impending unlock, which will result in more than 16% of the circulating supply hitting the market.
Impacts of Token Unlocks
Token unlocks, generally seen as bearish for the price, introduce previously frozen liquidity into the market through scheduled issuances. These are often directed towards project insiders and investors. In this case, Monday’s unlock will flood the open market with over 332 million SAND tokens.
As per TokenUnlocks, half of these tokens will go to the team and company reserve. Sandbox advisors will receive tokens worth about $15 million, while the remainder will be distributed among those who participated in the strategic and seed sales of SAND. This marks the first opportunity for these parties to sell their positions.
Market Reactions to Previous Unlocks
While SAND’s February unlock managed to defy the bearish trend, there’s no guarantee that this month’s unlock will follow suit. Since the start of August, the token has seen a 4% dip and has hovered around 40 cents over the past week. Last year’s August airdrop resulted in a 20% price drop within six days following the unlock.
However, Sandbox Discord Ambassador, known as Uncle Grumpy, cautions against panic. He argues that token unlocks don’t necessarily lead to an immediate market flood. “A lot of the tokens from these unlocks are used for events and rewards,” he said in a Discord conversation.
For those looking to keep a close eye on these developments, cryptoview.io is an excellent resource for tracking cryptocurrency movements and trends. With its user-friendly interface and extensive features, it helps investors make informed decisions.
