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Ahead of the next token unlocking event, owners of Sandbox (SAND) are sending more of the metaverse-based token to cryptocurrency exchanges for future sales. According to data from CryptoQuant, on August 10th, the altcoin recorded the highest number of tokens sent to exchanges since February, with a total of 81 million SAND. According to Token Unlocks, the unlocking event will see 332.55 million SAND tokens enter circulation, representing 16.16% of the total supply.
Tokens will be extracted 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).
Sandbox Current Status
In general, unlocking events can cause a decrease in the price of an asset as they inject previously locked liquidity into the market. An increase in supply for low-cap crypto assets is often not met with a corresponding increase in demand, thus creating downward pressure on the price.
The on-chain evaluation of SAND’s price has revealed that the new owners of the soon-to-be distributed tokens will be able to sell their newly unlocked tokens. Holding SAND could be a significantly unprofitable venture for many.
The evaluation of the In the Money (ITM) and Out of the Money (OTM) metrics on IntoTheBlock confirms this. These metrics are used to identify addresses that are likely to sell or buy tokens and to track the overall sentiment of the market.
Addresses that are “in the money” are holding their coins profitably, while those without money are losing value in their investments. At the time of writing, only 2.29% of SAND holders were holding the metaverse token in cash. Approximately 194,000 addresses, representing 96.36% of all SAND holders, experienced losses in their assets.
Since the beginning of the month, SAND’s price has been on a downward trend. It has dropped by 6% since it changed hands at $0.3945. This decrease is due to a decrease in network activity for the token.
Investors Remain Hesitant
Data from Santiment shows that the number of daily active addresses completing SAND transactions has decreased by 67% since July 21st. Similarly, there is no new demand that could drive up the asset’s price. The daily number of new addresses created for SAND trading has reached its lowest level in the past two months.
On the daily chart, key momentum indicators have remained flat and positioned themselves in this manner last week as well. This suggests that many traders are holding back before the unlocking event, resulting in a slowdown in SAND accumulation.
