This altcoin is expected to drop by 20% or more after the next unlock, which will distribute another fifth.
This altcoin is distributing
The 30th anniversary launch of the virtual world Sandbox on February 14, 2023 will give seed and strategic investors 348 million SAND tokens ($179 million). According to the project’s tokenomic data, according to the 12-month gap, seed investors will receive just over 17% of the total SAND supply by 14 August 22 2023, while other strategic sell investors will receive 4% by the same date.
The price of SAND is likely to drop by 20% or more after the next unlock, which will distribute another fifth of all SAND tokens owned by investors and seed sale participants.
The unlock, scheduled for 08:00 UTC, will release roughly 12% of the 3,000,000,000 SAND supply. As we mentioned at Kriptokoin.com, the metaverse token is currently trading at around 50 cents, down almost 94% from its all-time high of $8.40.
Crypto investors can take advantage of a potential buying opportunity right after the token unlocks, where the price is expected to drop to around 40 cents. According to CoinMarketCap, trading volumes have increased by nearly two-thirds after the last unlock on August 14, 2022, to over $540 million. Data from TradingView at the time showed that most of the volume was due to a significant sale.
Additionally, the recent token unlock ignited a downtrend that caused SAND to lose almost 60% of its value by January 10, 2023. However, over the past seven days the token has risen nearly 25% from 41 cents to 50 cents, sparking hopes for a relief rally in the days leading up to the middle unlock.
What is SAND?
SAND functions as a medium of exchange in The Sandbox. Sandbox is a game-oriented virtual environment that allows users to exchange digital creations on the NFT market. SAND holders can also take part in decisions regarding the future of The Sandbox decentralized autonomous organization (DAO), buy assets and land in The Sandbox, or trade their SAND on the open market. The SAND DAO treasury holds roughly 26% of the token supply.
Those altcoin holders looking to generate returns can lock their tokens into a staking smart contract to earn GEMs. They can use GEMs to identify the rarity of any user assets they upload to the market. DBS Bank in Singapore recently purchased land in The Sandbox to enable virtual customer interactions.
SAND’s trading volume on all exchanges in the last 24 hours was approximately $268 million, based on the average of data providers Coiningecko and CoinMarketCap. Several other soon-to-be-unlocked DeFi tokens could gain in value over the next two months, including SWEAT, the move-to-win token, BitDAO’s governance token BIT, and Yuga Labs’ ApeCoin.