Sandbox (SAND) is an ERC20 utility token that can be used by players within the metaverse of Sandbox itself. The coin is also freely traded as an asset on many exchanges and platforms. It’s seen a dramatic rise in price since the end of October. From trading just below $1 on the 28th October, it printed highs of $8.40 on the 25th November. Although this move has retraced somewhat in recent days, it’s clear that momentum is with it. Here’s a few reasons why SAND could be the future.
The first reason we like SAND is that the token isn’t just a meme coin like Shiba Inu or Dogecoin. It’s a currency of use within the Sandbox ecosystem. On the metaverse, I can use SAND as a medium of exchange to buy land and assets. Within the virtual world, land as a digital real estate is bought and sold much like we would in the real world. The price varies depending on the proximity to other projects that have been built by users within the world.
To purchase land, I’d need to use SAND. So logically I can extrapolate some thoughts here. If the metaverse is going to be the future, then SAND as a currency is also going to appreciate in value. Given the fact that more and more users are becoming involved on the ecosystem, SAND naturally has a center field role in the development. This should support gains in the coin going forward.
Getting exposure to the metaverse
Another reason why SAND could do well is because of the exposure it offers more conservative investors. Let’s be clear, not everyone is going to feel comfortable buying virtual land on the metaverse within Sandbox. Yet with land appreciating rapidly in value, investors won’t want to miss out on potential profits.
Therefore, some investors will decide to buy SAND outside of the metaverse and hold the coin in their virtual wallet. This gets them exposure to the theme, but in a more traditional (if I can call it that!) way. After all, the coin should gain in value from speculation that the metaverse becomes big, regardless of the more fundamental reason for potential gains mentioned above.
A diversifying addition
Finally, SAND could have legs as it acts as a diversifying asset within the crypto space. There are several different types of coins and tokens that I can buy. Some, like Bitcoin, are seen as a store of value, an alternative to fiat currency. Others, like Ethereum and Polkadot, are blockchain networks. Yet others, such as Tether and BNB, are referred to as stable coins and are used more to facilitate an exchange.
As a crypto investor, holding a mix of all the above allows me to diversify my risk towards one particular area. Now that the likes of Sandbox and Decentraland are on the map, it makes sense to add these into the mix as well.
Despite the good news, buying SAND is still a high risk investment. The volatility is exceptionally high. Even though this has been in the upward direction recently, it could easily retrace another 20-40% in a matter of a few days.