On Monday, August 14, the metaverse platform The Sandbox released approx. 16% of its circulating supply in a planned event. SAND, the utility token used in The Sandbox web3 ecosystem, is utilized for interaction and transactions, with a maximum supply of 3,000,000,000 SAND.
The anticipated event saw 332 million SAND unlocked, equating to $129.9 million in funds. The latest unlock means that 79% of SAND is now in circulation, with only 616 million yet to be released. The next release of tokens is scheduled for February 14, 2024.
Data published in shows that 71 million tokens went to the team and 96.8 million flowed into company reserves, while 103 million tokens were unlocked for seed sale participants. The remaining 37.5 million went to advisers and 24 million to strategic sales buyers; however, all tokens can now be freely traded on the market.
An increased supply usually pushes the price downwards and it is expected that much of the distributed tokens will be sold off. Interest in the metaverse has decreased by 92%, in sharp contrast to the hype it experienced when Facebook changed its name to Meta and revealed its ambitious plans for the space.
So far, SAND continues its slow decline in value, with only a modest drop. SAND trades at $0.38 currently, down 12% from a month ago and well short of its all-time high of $8.44 in November 2021. It appears quite likely that the market had already priced in the release of SAND as the events are pre-planned.
Legal Uncertainty and Developments
The United States Securities and Exchange Commission (SEC), which had labelled several altcoin securities, had also included SAND in that list, alleging that The Sandbox provides information that the public would use to make investments. Sebastien Borget, the Chief Operating Officer of The Sandbox, refuted these claims saying, “We do not necessarily agree with the characterization that’s been put in that litigation, including the qualification of SAND as a security there.”
Meanwhile, a partnership was established between The Sandbox and the British Museum. This partnership aims to develop a series of digital artefacts that reflect various things from the British Museum’s collections dating back to its founding in 1753. The British Museum, which houses the most extensive collection in the world, and is also the first public national museum, hopes to expand into the digital arena through its participation with The Sandbox.
This collaboration will create new immersive experiences that will allow visitors worldwide to examine and interact with artefacts from the British Museum’s collections. The cooperation includes the British Museum’s licensing partner, LaCollection, focusing on building digital collections and experiences showcasing the museum’s historical value and different artefacts.
“This is a great opportunity for The Sandbox players, regardless of where they are, to learn about and enjoy the amazing collections of human history, art, and culture in the British Museum,” Borget said.
It remains to be seen if the legal uncertainty and the future token release can be countered by positive developments such as the British Museum collaboration; it will certainly depend on a renewed interest in the metaverse, should that occur.