• A crypto whale moved $260 million worth of SAND tokens to a new address on the second day of the Metaverse Fashion Week.
  • This is the highest number of tokens moved since August 13, 2020, Santiment data shows. 
  • Users fear the whale could be preparing for a sell-off.

The Sandbox stands among the leading metaverse platforms, boasting commendable price performance in 2023, having risen almost 70% year-to-date. The metaverse project has also scored notable high-profile partnerships. However, investor sentiment appears to be turning sour as one whale has emptied its entire SAND wallet, valued at hundreds of millions of dollars, to a new address.

Orchestrating something?

A renowned Sandbox whale moved 409 million SAND tokens on Wednesday, March 29, the second day of the Metaverse Fashion Week (MVFW23). Being a metaverse token, the Sandbox (SAND) token is expected to react to the event that will focus on the newly constructed Neo Plaza, a welcome area established to showcase the next generation of fashion designers, Neo Designers.

At current rates, the 409 million SAND tokens transferred to a new address are valued at around $262.62 million, with each token auctioning for $0.64 at the time of writing. Based on Santiment data, this is the highest number of tokens moved since August 13, 2021, representing approximately 13.7% of the token's total supply.

Transaction volume. Source: Santiment

Etherscan data shows that the wallet holder ranks second after The Sandbox Genesis wallet in tokens held. Accordingly, users fear the whale may be preparing for a major sell-off, considering the decrease of major players since the onset of 2023.

Total Amount of Holders against the total percentage of supply held by Whales. Source: Santiment

On January 1, top addresses accounted for 77% of the total supply of the SAND token, but at the time of writing, the number has reduced to 74%, the lowest since the project's 2020 debut.

Effect of whale activity on SAND price

Notably, if whales decide to sell off their tokens, SAND price could suffer severely, worsening the network's underperformance in February. 

SAND/USDT 1-day chart

A comparison of SAND price against DappRadar data shows that retail investors' interest in the SAND token has plummeted despite the metaverse token's discounted rates. Similarly, network activity has dropped over the past few weeks, with DappRadar showing a 9.55% drop in Unique Active Wallets (UAW) on The Sandbox.

The Sandbox performance in Q1 2023. Source: DappRadar

With one cohort of whales fleeing the scene, it should not be surprising if others follow.

A deal from the Metaverse Fashion Week?

However, it is possible that big players have identified deals amid the ongoing Metaverse Fashion Week. Moreover, such large amounts have often been linked to maintenance procedures, which means the 409 million SAND transaction could be related to a newly found partnership. For instance, the recent collaboration between The Sandbox and Ledger required the former to recommend its security solutions to its partners. Presumably, the whale is upgrading the security features of the wallet.

It is worth mentioning that The Sandbox is actively looking to forge new partnerships and restore interest with exciting events. As most people speculate, with 2023 being the year metaverse projects and Web3 gaming ecosystems will make their breakthrough, SAND price could impress token holders soon.  

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Ripple proponent attorney slams Michael Saylor’s stand on Bitcoin as perfect money, XRP dips to $0.47

Ripple proponent attorney slams Michael Saylor’s stand on Bitcoin as perfect money, XRP dips to $0.47

Ripple proponent Bill Morgan slams Michael Saylor for promoting Bitcoin as perfect money. XRP Ledger AMM has crossed a milestone of 20 million XRP tokens in Total Value Locked.

More Ripple News

Bitcoin price stalls as BTC miners reserve dwindle; market watches for impact

Bitcoin price stalls as BTC miners reserve dwindle; market watches for impact

Bitcoin spot ETFs show continuous outflow from June 13 to June 21. BTC miners have also seen a decline in their reserves. Bitcoin price is trading inside a descending wedge, and a breakout above $64,600 signals a bullish move.

More Bitcoin News

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Bitcoin dipped under $63,000 on Monday, lowering crypto market capitalization by over 3%, per CoinGecko data. BTC is in a state of decline, and news of VanEck’s Spot Bitcoin ETF launch in Australia failed to improve traders' sentiment. 

More Cryptocurrencies News

Pepe poised for 20% crash

Pepe poised for 20% crash

Pepe price breaks below the ascending trendline support on Sunday, suggesting  a bearish move. On-chain data suggests that PEPE’s active addresses are decreasing, signaling lower demand for the network.

More Pepe News

Bitcoin: Is BTC out of the woods?

Bitcoin: Is BTC out of the woods?

Bitcoin appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation. 

Read full analysis