Sandbox: Holders leave nothing to chance as they distribute tokens ahead of unlock

• In less than two hours, 332.55 million SAND tokens will be released into circulation.
• Ahead of this, SAND holders have increasingly distributed their tokens. 

Ahead of its next token unlock event, the Sandbox [SAND] holders have increasingly sent the metaverse-based token to cryptocurrency exchanges for onward sales. 

Read The Sandbox’s [SAND] Price Prediction 2023-24

With an exchange inflow of 81 million SAND on 10 August, the altcoin recorded its highest number of tokens sent to exchanges since February, data from CryptoQuant revealed. 

81 million $SAND flowing into exchanges (70M went into Binance) as 332M SAND or 16% of current circulating supply will be unlocked tomorrow. pic.twitter.com/9O5NyaS70F

— Julio Moreno (@jjcmoreno) August 13, 2023

According to Token Unlocks, the unlock event will see the release of 332.55 million SAND tokens into circulation. This represents 16.16% of the token’s total circulating supply.

The tokens will be unlocked from the Sandbox Genesis smart contract and distributed to the team (71.25 million SAND), company reserve (96.84 million SAND), advisors (37.50 million SAND), strategic sale participants (24 million SAND), and seed sale participants (102.96 million SAND).

Interest in SAND has plummeted to new lows

Generally, token unlock events can be bearish for an asset’s price as they inject previously frozen liquidity into the market. For crypto assets with low traction, the increase in supply is not often met by a corresponding uptick in demand, therefore putting downward pressure on the price.

On-chain assessment of SAND’s price has revealed that new holders of the soon-to-be distributed tokens may sell off their newly unlocked tokens. For one, holding on to SAND has been a significantly unprofitable venture for many.

An assessment of the alt’s In the Money (ITM) and Out of the Money (OTM) metrics on IntoTheBlock confirmed this. These metrics are used to identify addresses likely to be selling or buying tokens and to track the market’s overall sentiment.

Addresses said to be “in the money” hold their coins at a profit. Conversely, those “out of money” book losses on their investments.

At the time of writing, only 2.29% of SAND holders held the metaverse token “in the money.” Around 194,000 addresses, which represented 96.36% of all SAND holders, realized losses on their holdings.

Source: IntoTheBlock

Since the month began, SAND’s price has trended downward. Exchanging hands at $0.3945, its value has since dropped by 6%. This decline has been due to a decrease in the token’s network activity.

Investors stay their hands

Data from Santiment showed that the count of daily active addresses that completed SAND transactions has dropped by 67% since 21 July. 

Realistic or not, here’s SAND’s market cap in BTC terms

Likewise, the new demand that might drive up the asset’s price has been non-existent. The daily count of new addresses created to trade SAND has fallen to a two-month low. 

Source: Santiment

On a daily chart, key momentum indicators remained flat and have been so positioned in the last week. This suggested that SAND accumulation has slowed as many traders have stayed their hands ahead of the unlock event.

Source: SAND/USDT on TradingView