Sandbox will unlock 332 million SAND tokens, worth $133 million, on Monday, August 14, representing over 16% of the project’s circulating supply. Unlocking a token usually results in a decrease in the price of that token.
Sandbox is currently down 5.4% in the monthly chart and 5.9% in the past two weeks. Sandbox has been on a bearish trend since February of this year. Although it had a slight trend reversal in mid-June, the situation reversed again in July and prices were on a downward trend once again.
However, this is not the first time the Sandbox (SAND) has dropped ahead of the token unlock. A similar trend was observed before SAND’s February unlock. Furthermore, the airdrop in August 2022 also resulted in a 20% drop in SAND price in just 6 days after unlocking.
SAND is currently facing resistance around $0.45, with support at $0.38. Furthermore, there isn’t much trading volume going on with SAND right now. Thus, this adds another reason for the gloom ahead for SAND.
According to IntoTheBlock, large transactions for SAND fell 4.15%. Given that 90% of SAND tokens are held by large wallets, this could be a warning signal. IntoTheBlock also notes that 95% of SAND holders are currently at a loss. Only 3% of holders are profitable, while 2% are a tie.
Is The Sandbox doing something to alleviate the drop?
Short answer: yes, the project is taking some steps to combat the drop.
About a week ago, 60 million SAND tokens were transferred from the Sandbox Genesis contract.
This indicates that the unlocking process has begun. Uncle Grumpy, Discord representative of The Sandbox, says that this is a way to avoid system shock.
According to TokenUnlocks, half of the tokens will go to the reserve fund of the development team and the company. Additionally, The Sandbox advisors will receive approximately $15 million worth of tokens. The rest is for seed sales.
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