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SAND token soars by 90% since Jan 2023 ahead of token unlock

Winnie Kimeu

Writer, News

Jan 31, 2023 at 05:23

Sandbox’s virtual world is feeling the love as its SAND token experiences a surge in price leading up to its highly anticipated token unlock on February 14, 2023.

As Sandbox prepares to unleash a flood of SAND tokens, typically a red flag for crypto markets, the token’s price shows remarkable resilience.

  • According to Token Unlock, 12% of the supply, worth $273 million, will be distributed among seed and strategic investors.
  • Additionally, Kaiko Research confirms that half will be reaped by savvy investors.
  • More data from Messari reveals a 90% surge in price since the start of the year.

Despite this, $SAND is currently 90% below its all-time high of $8, reached during the November 2021 crypto craze.

Token unlocks are now bullish

Once seen as negative (bearish) for crypto markets, token unlocks now bring excitement as tokens surge in anticipation. Case in point: the recent rallies in APT and AXS tokens before their respective unlocks.

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“The key to watch is the percentage allocated to investors, as heavy sell pressure is expected with around a 50% allocation.” Conor Ryder from Kaiko Research

Source: Kaiko Research
Source: Kaiko Research

In a comprehensive report on The Sandbox‘s previous token unlocks and their impact on price, Ryder added, “This upcoming unlock mirrors the August 14, 2022 event, leading to similar sell pressure and a dip in SAND’s performance.”

As Kaiko Research’s Conor Ryder recounts, the day after the unlock saw 75% of all trades being sell orders as investors rushed to cash out of SAND.

The sell pressure persisted, with sell orders outpacing buys in the days that followed. The aftermath of that token unlock still haunts the crypto market.

Token unlock expectations

Directed at investors, SAND token allocations have had a noticeable impact on its performance during unlocks.

“The token has suffered during previous unlocks, and investors are keenly aware of the potential fallout as another one approaches.” Conor.

His parting shot was a warning to all SAND holders. “Serious headwinds may be on the horizon. With an unlock schedule set to repeat every six months until 2025, and the same allocation to investors each time, SAND holders could be facing a rocky road ahead.”

SAND Price Value, Jan 31, 2023. Source: CoinMarketCap
SAND Price Value, January 31, 2023. Source: CoinMarketCap

SAND’s value is now at $0.726852 USD, down 2.29% in the last 24 hours.

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