• The Sandbox (SAND) price crashed in the past two days, due to the upcoming cliff unlock date and a risk-off sentiment.
• A cliff unlock is a situation that increases the number of tokens in circulation and can dilute existing holders.
• Sandbox recently announced a major partnership with Saudi Arabia Digital Government Authority, which could counterbalance the news of the unlock.
Sandbox (SAND) Price Crash
The Sandbox price has dropped for two days straight as the cliff unlock date approaches and as a risk-off sentiment took over. The SAND/USDT price has declined to a low of $0.7797, which was lower than this week’s high of $0.937.
Cliff Unlock Date
Crypto tokens have tokenomics which defines the distribution of initial tokens. A cliff unlock is when tokenomics increase the number of tokens in circulation and can dilute existing holders. According to Token Unlocks data, only 56% of all SAND tokens are currently in circulation, while 44% remain locked valued at over $1 billion. On Monday, 372 million tokens worth over $292 million will be unlocked meaning that 2.1 billion total SAND tokens will be in circulation with a market cap of more than $1.17 billion and diluted value of $2.34 billion.
Partnership With Saudi Arabia Digital Government Authority
On Wednesday, Sandbox announced their major partnership with Saudi Arabia Digital Government Authority but it remains uncertain what this partnership will do yet still there is speculation that government may take stake in company ownership for future development purpose .
Sandbox Price Prediction
Turning to daily chart we see that SAND crypto prices pulled back slightly below resistance point at 0.9800 (November 5 high). There seems to be forming cup & handle pattern which normally suggest bullish trend ahead .
Conclusion
It is uncertain whether buying The Sandbox would be safe or not due to upcoming cliff unlocks and partnerships with various digital government authorities yet there is suggestion that cryptocurrency might rise instead if positive news are released by developers before unlocking happens .
