The Sandbox Whales Deposit Large Amounts on Exchanges as Tokens Unlock
On-chain data reveals that The Sandbox whales have made significant deposits to exchanges as 332 million tokens of the asset become unlocked. This event, known as token unlock day, releases a portion of the cryptocurrency’s supply into circulation.
- About 332.55 million SAND tokens worth $131 million were successfully unlocked, accounting for 16.66% of the total circulating supply.
- The sudden increase in supply can create an imbalance in the market if the demand for the coin does not match.
- This imbalance could lead to a bearish domino effect for the asset.
- The head of research at CryptoQuant, Julio Moreno, suggests that the whales are aware of this potential and have made large deposits to exchanges.
- The exchange inflow indicator, which tracks the total amount of SAND being transferred to centralized exchanges, has registered a significant spike.
These inflows may have been made in preparation for the token unlock, indicating that the whales may want to sell before any bearish effect occurs.
However, as of now, The Sandbox has not experienced a significant decline in price. It is possible that the whales have not sold their holdings yet.
Looking back at a similar scenario in February, where an exchange inflow spike coincided with the coin’s local top, it is clear that the bearish effect may only appear with a delay.
Currently, The Sandbox is trading around $0.39, down 2% in the last week.
Hot Take
The recent spike in exchange inflow for The Sandbox and the token unlock event could potentially lead to a bearish trend for the asset. However, it remains to be seen if the whales will sell their holdings, which would trigger the bearish effect. Crypto traders should closely monitor the market for any significant price movements in the coming days.
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