• The Sandbox (SAND) token has surged 221% since the start of the year, with a scheduled token unlock on Valentine’s Day.
• An analysis of the fear and greed index indicates that markets are greedier than last year.
• The Sandbox will be releasing 12% of its total token supply on February 14th, however experts suggest there could be a similar underperformance for SAND as there was in August.

The Rise of SAND

The Sandbox token, SAND, has seen an impressive 221% increase since the start of 2021 according to CoinMarketCap data. This surge is likely linked to anticipation for the scheduled token unlock on Valentine’s Day, where The Sandbox will release 12% of its total token supply among investors, advisors and team members.

Fear and Greed Index Analysis

The fear and greed index has indicated markets are greedier than last year, despite The Sandbox’s consistent partnerships and developments in Web3 space. At press time, SAND is reportedly 32% down since the last token unlock event in August 2020 according to CoinMarketCap data; however it gained 30% in 24 hours following a landmark partnership deal with the Saudi Government.

Bearish Valentine?

Historically, such events can bring about heavy sell pressure from investors due to an increase in circulating supply – enabling them to lock in profits. It falls upon project teams such as The Sandbox to counteract this negative impact by announcing positive news that could improve investor confidence.

Previous Token Unlock Event

CoinMarketCap data showed that nearly 75% of all significant traders were sell orders on the day after The Sandbox’s prior token unlock event in August 2020 – indicating investors looked to capitulate out of SAND tokens at that time. As such, experts anticipate similar underperformance for this upcoming event given a similar level of token allocation being released compared to before.

Conclusion

Although The Sandbox has made some impressive collaborations and contributions within Web3 space so far this year, it remains unclear how well its primary utility token SAND will perform following Tuesday’s scheduled unlock event compared to when it reached its all-time high back in February 2020 ($8.44). Investors should remain aware of bearish tendencies associated with such unlocks while also taking into account external factors that may positively or negatively affect price performance around these events moving forward