- SAND HODLers faced losses of over 90%.
- The Sandbox introduced KYC for staking as staking decreases.
Recent data indicated that both The Sandbox [SAND] and other metaverse tokens, such as Axie Infinity [AXS] and Decentraland [MANA], have delivered unprofitable performance. Despite the lack of profitability of the SAND token, the team has implemented a new staking policy.
Read The Sandboxes [SAND] Price Forecast 2023-24
To get an accurate picture of the situation, we need to look at the state of SAND strike and the price movements in recent times.
SAND HODLers at a loss
Recent data from IntoTheBlock has revealed a challenging situation for holders of The Sandbox token, with their investments showing significant losses. At the time of writing, the loss rate reached 93%, indicating that the value of the SAND holdings had plummeted by more than 90%.
The only token with a higher loss rate was Axie Infinity at 95%.
To further highlight the magnitude of the losses, a 365-day market value to realized value (MVRV) ratio on Santiment was consulted, confirming the negative trend. The 365-day MVRV ratio was over -33%, indicating that the holders suffered losses of over 30% during this particular period.
The chart data also indicated that SAND holders had not experienced any profitable moments during this period.
Source: Sentiment
The Sandbox introduces KYC staking
Despite the disappointing performance of the SAND token, the team recently announced changes to its staking policy. According to their Aug. 3 tweet, the staking process now requires KYC verification. This new policy also affects how users claim earnings.
???? To improve user security and compliance, we have implemented KYC verification for our staking process. Our goal is to ensure that our users’ accounts are verified before they can participate in staking or claim their winnings.
Unverified users can still revoke their account $SAND,…
— The Sandbox (@TheSandboxGame) August 3, 2023
At the peak of its popularity in 2022, SAND saw the deployment of over $200 million in tokens. However, the total amount wagered plummeted to about $38 million, data from Dune analysis indicated. This reflected a significant decrease in strike participation.
At the time of writing, more than 85.8 million SAND tokens have been deployed, while the total circulating supply of SAND has exceeded 2 billion. These figures provide insight into the part of the circulating supply that is currently locked up by strikes.
SAND deep price trend
SAND’s daily timetable chart revealed a worrying trend of decline. The token has suffered losses for two consecutive days and the press trading period marked its third day of decline.
Source: TradingView
How much are 1,10,100 SANDs worth today?
At the time of writing, SAND was trading at around $0.4 and registered a loss of less than 1% from its previous value.
The continued price decline also impacted SAND’s Relative Strength Index (RSI), pushing it below the critical 40 level.