Metaverse platform Sandbox’s SAND token has slid this month ahead of its Monday unlock, set to release more than 16% of the circulating supply.
However, 60 million SAND tokens were transferred out of the multisig Sandbox Genesis smart contract one week ago, according to block explorer Etherscan, a sign the unlock had already begun. Sandbox Discord Ambassador, who goes by the screenname Uncle Grumpy said this was an effort to “not shock” the system.
Token unlocks, typically bearish for the price, inject previously frozen liquidity into the market with scheduled issuances, often to project insiders and investors. Monday’s unlock will see over 332 million SAND tokens (roughly $133 million) enter into the open market.
According to TokenUnlocks, 50% of the tokens will be allocated to the team and company reserve. Sandbox advisors will receive about $15 million worth of tokens, while the remaining rest will go toward those that participated in the strategic and seed sales of SAND. Each of these parties will be able to sell their positions for the first time.
SAND’s 24-hour trading volume at press time stands at $74.9 million, per CoinGecko.
SAND’s February unlock managed to buck the bearing trend but there was no sign that this month’s instance would do the same. The token has fallen 4% since August 1 and spent the last week around 40 cents. Last year’s August airdrop pushed the price down over 20% in six days after the unlock.
“Just because there are token unlocks, it doesn’t mean the tokens are immediately flooding the market,” said Uncle Grumpy in a Discord conversation. “A lot of the tokens from these unlocks are used for events and rewards.”
