SAND Token Slides Ahead of Unlock, 60 Million Tokens Already Released
The price of SAND, the token of metaverse platform Sandbox, has experienced a 4% decline in August. This comes ahead of the scheduled token unlock on August 14, which will release over 16% of the circulating supply. However, it appears that 60 million SAND tokens were already transferred out of the multisig Sandbox Genesis smart contract a week ago, suggesting that the unlock process had already begun. The move was made to prevent a sudden shock to the system.
Key Points:
- 60 million SAND tokens were transferred out of the Sandbox Genesis smart contract prior to the scheduled unlock.
- Token unlocks inject liquidity into the market and are typically bearish for the price.
- Over 332 million SAND tokens will be released into the open market during the unlock, worth approximately $133 million.
- 50% of the tokens will be allocated to the team and company reserve, while advisors and strategic investors will receive a portion of the remaining tokens.
- SAND’s 24-hour trading volume currently stands at $74.9 million.
In the past, token unlocks have often led to a decrease in price. However, it is important to note that not all tokens immediately flood the market. Many unlocked tokens are used for events and rewards, as explained by Uncle Grumpy in a Discord conversation. Despite the decline in price, it remains to be seen how the upcoming unlock will impact SAND’s value.
Hot Take:
The SAND token’s price decline ahead of the unlock suggests that there may be concerns among investors about the potential influx of tokens into the market. However, the release of tokens is a common occurrence in the crypto space, and it is important to consider the broader context and the potential use of unlocked tokens. The market’s reaction to the unlock will ultimately determine the impact on SAND’s value.
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