The cryptocurrency SAND is getting a good name in the crypto industry. It was unknown until a month ago. The token, currently valued at just over $6, comes from the Metaverse platform The Sandbox. In two weeks, its value increased three times. The SAND token is a standard version of the ERC-20 token, implying that owners can stake it and benefit from the staking rewards. What exactly is SAND, and why is it suddenly so popular? Read on to get everything you need to know.
What is SAND?
Pixowl developed a blockchain-based virtual world called The Sandbox that allows people to create and explore universes. In August 2018, Animoca Brands purchased the mobile and PC games and brought them to the blockchain. It has some similarities with Minecraft, like people using elements like water, soil, lightning, lava, sand, and glass to build different spaces in the virtual world. Also, they encounter various tasks whose accomplishment leads to rewards. For example, mixing given amounts of different materials to create new resources. These worlds can be saved and uploaded to a public gallery which is possible by combining the powers of Decentralised Autonomous Organizations (DAO) and Non-fungible Tokens (NFTs).
But what causes the price to soar? In October, the SAND price went up dramatically with the event coinciding with Facebook formally declaring a name change. Mark Zuckerberg made several comments about the digital universe’s metaverse that allows human interaction in an avatar form. In Facebook’s annual conference, he emphasized that the company’s focus is changing to the upcoming trends. Such a powerful tech company initiating the idea of Metaverse led to a hike in the stocks. So, what could be next? SAND’s long-term prospects show optimism.
As I mentioned yesterday, investors with tremendous momentum and the potential to alter returns prefer options such as SAND. Currently, it has a market capitalization of only $4 billion. The top 50 cryptocurrencies list is broken by market capitalization today. Given the enormous interest around the metaverse space and the implications that blockchain-based metaverse games have, there is a significant risk as well as this is a lesser-known coin.
People wonder about investing in cryptocurrencies? The British financial authorities do not regulate them, but people invest themselves. It would be best if you were prepared to lose everything you invest. Everything is a risk. However, smaller coins and meme coins, such as Shiba Inu, are safer. The Financial Conduct Authority (FCA) warned in January that very high risks are generally involved with investors’ money. If consumers invest in these products, they should be prepared to lose all their money. The risks have been explained before by Susannah Streeter at asset management firm Hargreaves Lansdown. Most cryptocurrencies are unregulated because of their high volatility. They also have little protection.