A cryptocurrency called SAND, which was relatively unknown until a month ago, has risen in value.
The token, which comes from the metaverse platform The Sandbox, is currently valued at just over $ 7.33, three times what it was 10 days ago.
Its price was previously stuck at around $ 0.75, before starting to climb in late October.
But what exactly is SAND and why does it suddenly appear? Here’s all you need to know.
What is SAND?
SAND is the sandbox token. The Sandbox is a blockchain-based virtual world developed by Pixowl, which allows people to create and explore universes.
It was originally a mobile and PC game, but was acquired by Animoca Brands in August 2018 for integration into the blockchain.
It has some similarities with Minecraft in that players use resources such as water, soil, lightning, lava, sand, glass to build and can interact with others.
Players will be faced with tasks, such as crafting a certain material using other resources. They can also save and upload their worlds to a public gallery.
Coin Market Cap says, “By combining the powers of Decentralized Autonomous Organizations (DAOs) and Non-Fungible Tokens (NFTs), The Sandbox creates a decentralized platform for a thriving gaming community.
Why is its price soaring?
SAND saw a dramatic price hike in late October, which coincided exactly with Facebook’s announcement that its main company was renamed to Meta.
CEO Mark Zuckerberg also made a number of comments on the Metaverse – a digital universe that allows humans to interact as avatars, allowing people to work, shop, learn and play in spaces. virtual reality without being physically together.
He told Facebook’s annual conference, “Over time, I hope that we will be seen as a metaverse company and I want to anchor our work and our identity to what we strive towards.
One of the most powerful companies in the world that places so much importance on the concept of the metaverse has sparked interest in platforms like The Sandbox and Decentraland.
What could happen next?
Investment site The motley fool is optimistic about SAND’s long-term outlook.
He wrote yesterday: “Investors looking for cryptocurrencies with huge momentum and the potential for portfolio-modifying returns are looking for options like SAND. It currently has a market cap of “only” $ 4 billion. However, it is also a rapidly rising cryptocurrency, having surpassed the top 50 list in terms of cryptocurrencies by market cap today.
“Given the disproportionate interest in the metaverse space and the implications that blockchain-based metaverse games could have in this environment, this is a cryptocurrency that investors seem willing to jump on. . “
However, it also comes with a significant risk, especially being a lesser-known piece.
Should I invest in cryptocurrency?
People invest at their own risk and cryptocurrencies are not regulated by the UK financial authorities.
All crypto investments are risky, but smaller coins and even coins like Shiba Inu are particularly volatile, and you should be prepared to lose whatever you invest.
The Financial Conduct Authority (FCA) warned in January: “Investing in crypto-assets, or related investments and loans, usually involves taking very high risks with investor money.
“If consumers invest in these types of products, they should be prepared to lose all of their money. “
Susannah Streeter, senior investment and markets analyst at asset management firm Hargreaves Lansdown, previously explained the risks of I.
She said: “In addition to being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty, but also means investors have little to no protection against the risk. fraud.”