Massive Transfer of $SAND Tokens Raises Concerns over Market Dynamics
The Sandbox faces market pressure as a significant token transfer and unlocking event raise concerns about $SAND cryptocurrency’s dynamics.
- Lookonchain announces a substantial transfer of 127M $SAND tokens from The Sandbox wallets, raising concerns.
- Token Unlocks reveals that 332.55M $SAND tokens will be unlocked, accounting for 16.16% of the circulating supply.
- The $SAND price experiences market reaction after the SEC charges against Binance, plummeting 50% within six days.
- Recent transfer and impending position reduction put pressure on $SAND price, adding complexity to The Sandbox’s market dynamics.
On August 4, 2023, Lookonchain, a Twitter account known for tracking on-chain cryptocurrency data, made an alarming announcement regarding a substantial transfer involving The Sandbox’s ($SAND) tokens. The tweet stated, “We noticed that 127M $SAND ($51.32M) was transferred from #TheSandbox wallets 6 hrs ago.”
— Lookonchain (@lookonchain) August 4, 2023
Unlocking of $SAND Tokens Revealed
Lookonchain further shared information from Token Unlocks, which revealed that a significant number of $SAND tokens would be unlocked after 10 days. According to their report, “332.55M $SAND ($134.4M) will be unlocked, accounting for 16.16% of the circulating supply.”
SEC Charges against Binance Impact $SAND Price
This recent development surrounding The Sandbox comes after the Securities and Exchange Commission (SEC) charged Binance on June 5. In the filing, notable cryptocurrencies such as SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI were named as securities. As a result of this announcement, the $SAND price experienced a drastic market reaction. It reached its peak of 0.6151 on June 5, only to plummet to a low of 0.331 on June 10, marking a significant 50% decline within just six days.
Resurgence of $SAND Threatened by Impending Position Reduction
On July 14, 2023, Spot On Chain drew attention to a resurgence in both $SAND and $MATIC prices. The spike in these cryptocurrencies was attributed to the US judge ruling that $XRP is not a security. However, amidst the pumps, Spot On Chain expressed concerns that The Sandbox may soon reduce their $SAND position. Additionally, a renowned Key Opinion Leader (KOL) known as @degentradingLSD took profit from a $MATIC deal he had accumulated prior to the market surge. Despite reaching its recent high of 0.4862, the $SAND price has since been experiencing a persistent downward trend.
As of now, the $SAND price stands at approximately 0.4, reflecting a 20% decrease from its recent peak. The transfer of 127 million $SAND tokens is significant and is expected to exert considerable pressure on the $SAND price. This transfer adds further complexity to the already dynamic market surrounding this cryptocurrency.
In conclusion, the massive transfer of $SAND tokens, along with the unlocking of a substantial number of tokens, has raised concerns about the market dynamics of The Sandbox. With the recent SEC charges against Binance and the potential reduction of The Sandbox’s $SAND position, the cryptocurrency’s price has been experiencing substantial volatility. Investors and traders must closely monitor these developments to navigate the unpredictable crypto market successfully.