• The Sandbox token, SAND, has surged a whopping 221% since the start of the year, ahead of the scheduled token unlock on Valentine’s Day.
• The metaverse platform will release a significant percentage of the total token supply and distribute it among investors, advisors, and team members.
• Historically, token unlocks are considered bearish events because of the surge in circulating supply and the event enabling investors to capitulate and lock in profits.
The Sandbox (SAND) Performance
The Sandbox token, SAND, has surged a whopping 221% since the start of the year, ahead of the scheduled token unlock on Valentine’s Day. The metaverse platform will release a significant percentage of the total token supply and distribute it among investors, advisors, and team members.
Valentine Token Unlock
The fear and greed index has indicated markets are greedier than last year, and The Sandbox has not been slow in development. On February 14th over 370 million SAND tokens from its three billion supply will be unlocked. Although SAND may have performed impressively this year, surging 221% to 90 cents; it is reportedly 32% down since last years‘ unlock event in August according to CoinMarketCap data.
Saudi Metaverse Deal
The Sandbox recently announced a landmark partnership deal with Saudi Government which saw 30% growth within 24 hours for its primary utility token SAND on CoinMarketCap data. This news could increase investor confidence however historically speaking these unlocks tend to bring about heavy sell pressure from investors causing underperformance for crypto assets such as SAND tokens.
Impact on Price
Experts suggest that due to similar amount of tokens being unlocked during this event compared to last years‘, there could be similar underperformance for SAND tokens again this year if no other developments are made prior or after unlocking. According to trade history nearly 75% of all significant traders were sell orders on day after August’s unlock event indicating that investors looked to capitalize out of their positions quickly once unlocked was completed.
It appears that although The Sandbox’s primary utility token SAND has seen impressive growth it still stands far away from its all time high price reached at $8.44 back in 2021 according to CoinMarketCap data . Team behind The Sandbox can counter negative impact by announcing positive news that could increase investor confidence but otherwise experts suggest that we should expect similar underperformance for SAND come February 14th when tokens are unlocked compared to last years’ unlock event results .