The Sandbox, a popular metaverse platform, is facing a potential crisis as investor sentiment sours due to the actions of a particular whale. The whale in question has recently emptied its entire SAND wallet, which was worth hundreds of millions of dollars, and moved the tokens to a new address. This represents the most significant token movement since August 2022 and equates to 13.7% of the total token supply.
While some fear that the whale may be preparing for a major sell-off, others believe that the move could be part of a maintenance procedure or an upgrade to the whale’s wallet’s security. Regardless of the whale’s motivations, the potential consequences of a sell-off are severe. With top addresses holding 74% of the total SAND supply, a major sell-off by the whales could negatively impact SAND’s price, adding to the underperformance of the network last month.
Despite this, The Sandbox has been working on building new partnerships and reigniting interest through exciting events. The metaverse company is actively establishing itself as a leader in the Web3 gaming space, and many are considering 2023 to be the breakthrough year for the metaverse. The next few months could be crucial for The Sandbox to establish itself in this rapidly evolving landscape.
The recent decrease in the number of big players holding SAND is a worrying trend for the network. In January 2023, top addresses held 77% of the total SAND supply. However, this number has dropped to 74% at present, which is the lowest since the project’s inception in 2021. Retail investors’ interest in SAND has also dwindled, and network activity has slowed, with a 9.55% decrease in Unique Active Wallets on The Sandbox according to DappRadar.
Although the decrease in the number of big players may be concerning, it’s improbable that they’re looking to sell their tokens. Large amounts of tokens are often connected to maintenance procedures or upgrades to wallet security. The recent partnership between The Sandbox and Ledger required the metaverse company to recommend Ledger’s security solutions to its partners, and it’s likely that the whale is upgrading their wallet’s security.
Despite the recent decrease in trading volume and network activity, SAND has surged 70% this year to $0.635 apiece at present. However, the potential impact of a sell-off by the whales cannot be ignored, and it won’t be long until other investors follow suit. The Sandbox must continue to build new partnerships and generate interest in the network to establish itself as a leader in the rapidly evolving Web3 gaming space.
