Decentralized Gaming Platform, The Sandbox, to Release $133.86 Million Worth of SAND Tokens
According to TokenUnlocks, The Sandbox is set to release 332.55 million SAND tokens into circulation on August 14. This represents 16.16% of the token’s maximum supply. Here are the key points:
– The upcoming SAND release will increase the total number of new SAND tokens in 2023 to 705.3 million.
– The newly released tokens will be allocated to various parties, including the 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.
– Currently, there are 2.05 billion circulating SAND tokens, representing 68.6% of the total supply. After the release, these figures are expected to rise to 2.39 billion and 84.76%, respectively.
Potential Impact of Token Release on SAND’s Price
The sudden introduction of a large number of tokens to the market can create a higher supply-to-demand ratio, leading to a decrease in asset prices. Here are the key points:
– Based on declining network growth on the Sandbox platform, the upcoming token unlock may have a bearish effect on SAND’s market price.
– The number of new addresses on Sandbox has decreased by 66.87% in the last month.
– If this trend continues, Sandbox may struggle to counter the inflationary pressure, potentially resulting in a price decrease.
Related Reading: Aptos (APT) Gains By 10% Ahead Of July Token Release
Despite the expectation of bearish pressure, the effects of token unlocks are still unpredictable. Here are the key points:
– Following SAND’s last token release in February, the price movement was positive, reaching a market value of $0.88.
– Investors are advised to monitor network growth and whale movement on Sandbox for major developments.
– Currently, SAND is trading at $0.40 with a 0.62% gain on the last day, but it has lost 2.98% of its value on the weekly chart.
Hot Take
The release of SAND tokens by The Sandbox presents both opportunities and risks for investors. While the increased token supply may lead to a decrease in price, positive price movements following previous releases suggest potential for growth. It is crucial for investors to closely monitor developments on the Sandbox platform and consider the impact on market dynamics.
By
By
