I know Bull Run is coming and we are all tempted to buy our favorite tokens. But right now you must stay away from buying these two high-potential tokens. WHY? Because more than 300 Million tokens are about to unlock.

How does that affect you or me? Should I expect the token price to drop or rise? Should I sell, buy, or hold? I have looked back at their price action during previous unlock events and that tells me it’s bad news. Let us get into the details in these altcoins.

1) The Sandbox (SAND)

I take a look at it with the SAND token. You must know it is the native token for The Sandbox, the gamified metaverse. In November 2021, the SAND token went on a price rampage. It surged from $0.76 on October 28th to $8.40 on November 25th. That’s a x11 in just one month. So we know coming bull run, this project has huge potential

The current price is $0.407191. Its market cap is $834 million. And now it has become interesting for our purpose. It’s #51 by market cap rank. The max and total supply is 3 billion SAND tokens. Currently, there are 2 billion tokens in circulation. But that is about to change. Come Monday, 14th August 2023, another 308.46 million SAND will hit the markets. That’s no less than 10.28% of the total supply.  At the current price, that’s around $124 million. That is almost 15% of the market cap. 

In other words, this is a serious token unlock event. So, what I like to do is look back at some recent unlock events. In particular, I will take a look at the price movement around these unlock events. 

The SAND tokens unlock in 6-month cycles. So, each time on 14th August and 14th of February each year. As we saw, they unlock significant amounts as well.

Let’s go back to February 2023. See this chart. Shortly before the unlock, we saw a price increase. From the 7th to 8th February, the price went from $0.7 to $0.91. That’s a 30% increase. However, on the 14th, we saw a drop back to $0.68. Thereafter, it climbed to $0.82 on the 21st Feb. However, as of the 21st we saw a price drop. This ended on 13th March at $0.53.

One year ago, on August 14th 2022, I noticed this development. On the August 14th , the price was at $1.33. However, on August 15th, a dump started that reached $0.83 on 19th September. That didn’t stop until the end of October, when it hit $0.73. On 14th February 2022, we also saw a dump in price after the unlock. From $4.04 on 15th February to $2.92 on 22nd February. In August 2021, we saw a drop from 14th August of $0.66 to $0.58 on the 19th.

So, what can we expect on Monday? Looking at these historical dates, we can expect a decline in price. SAND seems in a continuous slide since the last unlock in February. If you already have SAND, and bought it at a higher price, this is not the right moment to sell. If you believe that gaming and metaverses will do well during the next bull run, this is a great entry point.

#2: Worldcoin (WLD)

The second unlock event for today I’m taking a closer look at is Worldcoin. One of the most controversial blockchain projects. I am not a big fan but after its recent launch, World App downloads and signups have hit record highs. Worldcoin is a digital ID platform. It can identify humans and make sure you’re not a robot or AI. The project does this with ‘Orbs’. These are tools that can identify your iris. 

You can find these Orbs located around our globe. Currently, 34 countries had verifications happen. However, verified people originate from 120 different countries. And these numbers keep growing. But, there’s a lot of controversy surrounding Wolrdcoin and the Orbs. In short, reading your iris is intimate and unique. How is it with your privacy? Many European countries have strict rules about your privacy. 

For example, there are known cases of login credentials theft. Other cases involved black market sales of World IDs. Worldcoin has a bit too much of a Big Brother feel for my liking. However, the project also has many fans. And if you are like me or Mattie and wondering whether you should go all in or not, check out this video. It answers almost all of your questions

Now, the WLD token launched on July 24th, 2023, and immediately peaked at $3.30. There was a steep drop to $1.94 on July 25th, followed by another leg up to $2.48. The current price is back to $1.94. The market cap is $239 million. However, the fully diluted valuation is $19 billion. So, this indicates the first problem with WLD. There’s a massive gap between the max and total of 10 billion WLD tokens and the circulating supply. This is only at 123 million tokens. This restricted supply will affect the price.

That brings us to issue #2. Each day, Worldcoin releases 3.43 million WLD tokens. That’s 0.03% of the supply, each day! With the current price, that’s $2.79 million, or 3% of the market cap. This is a ticking time bomb. On a positive note, most tokens that enter circulation are allocated to the community. This is good. The team governs them. Now, this can be good or bad. It all depends on what the team will do with that governance. It’s a bit early to get a good grip on that.

There’s another issue that makes things worse. Market makers control the majority of the current circulating supply. In other words, VC backers, institutions, and investors control too many of the current circulating tokens. There are few tokens available to the public. So, giving credit to these aspects, I expect the WLD token to keep sliding. With all other controversies surrounding the project, I steer clear of it. What do you think of Worldcoin? Let me know in the comments.

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The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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