Investor confidence in The Sandbox (SAND) metaverse platform took a hit on Wednesday, March 29, after a major The Sandbox whale moved a staggering 409 million SAND tokens to a new address. The move came on the second day of Metaverse Fashion Week (MVFW23).
The Sandbox is one of the top-performing metaverse platforms in 2023, having gained almost 70 percent in value so far this year. The metaverse project has also established significant partnerships with high-profile companies.
Plan your #MVFW23 itinerary 👠
March 28-31 brings four fabulous days of fashion shows, parties, shopping, panel talks, and amazing experiences to the metaverse.
Get ready to make your way through the big event like a model on the catwalk. 💫https://t.co/ZNWLY1EtJF
— Decentraland #MVFW23 (@decentraland) March 25, 2023
Concerns over major sell-off
Currently, the 409 million SAND tokens have an estimated value of $262.62 million, with each token being sold for $0.64 as of this writing.
According to Santiment, this is the largest amount of tokens moved since August 13, 2020, accounting for about 13.7 percent of the SAND token total supply.
“A known The Sandbox whale emptied out its entire 409 million SAND and moved to a new address today. This was the most coins moved since the asset’s first week of existence in August 2020,” a Santiment analyst wrote.
🐳 A known #TheSandbox whale emptied out its entire 409M $SAND ($250M in total) and moved to a new address today. This was the most coins moved since the asset's first week of existence in August, 2020. Today's $261M moved is the most moved in 7 months. https://t.co/VnAiYbN06Z pic.twitter.com/SOHbUk2OvO
— Santiment (@santimentfeed) March 28, 2023
Additionally, Etherscan data reveal that the whale is in second place in terms of tokens held, right behind The Sandbox Genesis wallet.
This move has raised concerns among users that a major sell-off may be imminent, especially given the decline of significant players since the beginning of 2023.
Top addresses held 77 percent of the token’s total supply on January 1. However, the number has dropped to 74 percent as of now, the lowest since the project started in 2020.
A comparison between SAND price and DappRadar data indicates that retail investors have shown less interest in the SAND token despite the lower rates offered. Furthermore, network activity on The Sandbox has decreased in the last few weeks, with DappRadar reporting a 9.55 percent drop in Unique Active Wallets (UAW).
If the whales choose to sell their tokens, the value of SAND could experience a substantial decline, further exacerbating the network’s already poor performance in February. Given that one group of whales has left the scene, it would not be surprising if others follow.
The Sandbox’s recent collaborations
There is speculation that significant players may have found business opportunities during the Metaverse Fashion Week.
Some experts suggest that such large transactions have sometimes been associated with maintenance processes, meaning the recent 409 million SAND token transaction could be linked to a new partnership.
In fact, The Sandbox announced a partnership with digital assets security provider Ledger Enterprise earlier in March. This partnership will facilitate The Sandbox’s enterprise brand partners to integrate security measures to protect their LANDs and The Sandbox NFT collection wallets.
Global fashion brand Tommy Hilfiger also committed to metaverse interoperability by partnering with The Sandbox and other companies.
DappRadar reported that The Sandbox’s quarterly trading volume had dropped 36 percent to $3.5 million since Q4 2022. Despite this, SAND has experienced a 70 percent surge this year, with each token valued at $0.64.
With 2023 being the year for the breakthrough of metaverse projects and Web3 gaming ecosystems, many speculate that the SAND token price may soon impress its holders. The next few months can be critical for The Sandbox to establish itself as a leading virtual playground.