What is SAND/USD?
Founded in 2011, SAND is the native cryptocurrency of "The Sandbox" ecosystem. The Sandbox is a blockchain-based virtual world and game creation platform built on the Ethereum blockchain that allows users to create, own, and monetise their gaming experiences and assets. The Sandbox aims to be part of the broader concept of the metaverse, where interconnected virtual worlds and experiences create a shared, immersive online space.
Non-fungible tokens (NFTs) play a significant role in The Sandbox ecosystem. Users can create and sell NFTs representing in-game assets, including characters, items, and land parcels. These NFTs can be traded on various marketplaces.
The Sandbox incorporates a "play-to-earn" model, where users can earn SAND and other rewards by engaging with the platform, creating content, and participating in various activities.
SAND/USD historical performance
During the price discovery phase in November 2021, the price of sand surpassed $8. However, speculation combined with the overvaluation of projects and regulatory uncertainty contributed to the correction of the metaverse market. The SAND token lost over 95% of its value over the subsequent 2 years, reaching levels not seen since the middle of 2021.
Over 2 billion tokens out of a total supply of 3 billion are currently in circulation.
What affects the price of SAND/USD?
As the Sandbox ecosystem is built on the Ethereum blockchain, it uses Ethereum's smart contract capabilities. When users interact with the Sandbox platform, they often need to pay fees in ether (ETH) to execute transactions or interact with smart contracts. As such, an increase in activity within The Sandbox can lead to increased demand for ether. Conversely, changes in the price of Ethereum can affect the price of Ethereum-based tokens, such as SAND/USD.
Positive developments, partnerships, or upgrades related to Ethereum can boost overall market sentiment, potentially benefiting SAND and other cryptocurrencies.
The price of MANA could also be influenced by celebrity endorsements, with prominent figures like Paris Hilton, Justin Timberlake, and Snoop Dogg, as well as major brands such as Gucci and Adidas becoming part of The Sandbox ecosystem.
Regulatory changes and government policies regarding cryptocurrencies can affect the price of SAND/USD. Positive regulatory developments can provide a sense of legitimacy and security, while negative regulatory news can lead to uncertainty and price volatility.
Significant NFT sales or collaborations within The Sandbox, such as with Bored Ape Yacht Club, can generate media attention and hype. If well-known artists, developers, or brands create NFTs on the platform, it can attract more users and investors, thereby increasing overall interest in The Sandbox and possibly boosting demand for SAND.
What to watch out for when trading SAND/USD?
- Ethereum and Bitcoin market sentiment.
- Ethereum-based tokens and projects.
- Central bank decisions, such as those made by the US Federal Reserve regarding interest rates.
- Statements or actions from regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States or the Markets in Crypto Assets (MiCA) regulation in Europe.
- The listing of SAND on prominent exchanges may increase its liquidity and trading volume, which may influence its price.
- Sentiment regarding SAND on social media platforms, message boards, and news outlets.