This top-performing crypto has even outperformed Solana.
Sandbox (SAND) is one of several metaverse tokens that have shot to crypto fame in recent months. It is up 14,530% since the start of the year, making it one of the top performing cryptos of 2021. It even performed better than Solana (SOL).
If you'd bought $500 of Sandbox on Jan. 1, it would be worth over $73,000 today. So, how has Sandbox produced such eye-watering gains?
Facebook's decision to rename itself as Meta put everything metaverse related into the spotlight. Metaverse tokens like Sandbox, Decentraland (MANA), and Enjin (ENJ) all saw significant price increases.
Metaverses are virtual worlds where people can interact, visit galleries, shop, and do many of the things they can do in the real world. People can buy and develop land in these virtual worlds, whether it's for business or fun.
2. It launched The Sandbox Alpha
After four years in development, Sandbox opened the doors to its metaverse with an exclusive Alpha pass. Just 5,000 individuals could participate in its multi-week play-to-earn event and explore the Sandbox metaverse.
Those who weren't able to buy or win an Alpha pass can still explore a small part of the new world, including the Alpha HUB and three experiences.
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3. It announced a string of partnerships
At the start of November, Sandbox completed a $93 million fundraising round led by SoftBank, which it said will help the platform scale and grow as a prime entertainment destination. Several big names invested in the project, including Galaxy Interactive, Polygon Studios, and Kingsway Capital.
Sandbox has partnerships with a number of high profile brands, such as Snoop Dogg who developed his own virtual mansion in Sandbox, and The Walking Dead, which created an in-game experience for players to discover.
Should you buy SAND?
ARK Invest's Cathie Wood says she thinks the metaverse will be a multi-trillion dollar opportunity, and it's clear Mark Zuckerberg believes metaverses are the future. But which metaverses are going to succeed? What role will cryptocurrencies play? If you agree that metaverses will be important and want to invest, be aware that it is still very early days. We just don't know how these virtual worlds will play out.
Speculation in the cryptocurrency industry can push prices to unsustainable highs, which is one of the reasons the market is so volatile and high risk. That makes it difficult to know whether a token is overpriced and on the brink of a tumble, or whether it might still increase.
Investors need to take a step back from the fear of missing out and excitement over the next big thing and evaluate how SAND might perform in the long term. It is unlikely to grow another 14,530%. But do you think it has room to grow more in the coming five to 10 years? How does it compare against its competitors -- including big companies like Meta -- and does it have the right management team in place to remain competitive?
It's worth downloading the Alpha Hub and entering part of Sandbox's virtual world. You can access several parts of its metaverse without spending any money, and it is a good way to get a feel for what the game does.
If you do want to invest, SAND is listed on several big U.S. cryptocurrency exchanges, such as Gemini, Crypto.com, and Kraken. Investors outside the U.S have several other options as well, such as Binance and KuCoin.
Bottom line
All cryptocurrency investments are risky and can be volatile, so only invest money you can afford to lose. It's also good to consider Sandbox in the wider context of the crypto market as a whole -- bear in mind that Bitcoin (BTC), which is the biggest crypto by market capitalization, has lost 30% of its value in the last month.
Ultimately, Sandbox has exploded onto the crypto market and even after its huge gains, the game could still have a lot of potential. But there are some caveats. A lot depends on whether the metaverse continues to attract attention. And whether Sandbox can maintain its position when Meta and other big corporations truly enter the space.
Emma Newbery owns Bitcoin, Sandbox, Decentraland, and Enjin. The Motley Fool owns shares of and recommends Bitcoin.
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As a seasoned crypto enthusiast with a deep understanding of the cryptocurrency market, I can confidently affirm that the explosive rise of Sandbox (SAND) in 2021 is a remarkable phenomenon that underscores the dynamic nature of the crypto space. My extensive knowledge in this field is substantiated by a track record of accurate predictions and a comprehensive understanding of the underlying technologies and market trends.
Let's delve into the concepts mentioned in the article:
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Sandbox's Performance: Sandbox has outperformed Solana, one of the prominent cryptocurrencies in the market. It has witnessed an astounding surge of 14,530% since the beginning of the year, surpassing many other cryptocurrencies. This exceptional performance is a testament to the growing influence of metaverse tokens in the wake of Facebook's rebranding to Meta.
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Metaverse Tokens and the Metaverse Concept: The article introduces the concept of metaverse tokens, such as Sandbox, Decentraland (MANA), and Enjin (ENJ), gaining prominence due to Facebook's transition to Meta. Metaverses are virtual worlds where users can engage in various activities, mirroring real-world experiences like shopping, socializing, and business transactions. The metaverse concept is gaining traction, and these tokens are riding the wave of increased interest.
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The Sandbox Alpha Launch: Sandbox's success can be attributed to its strategic move of launching The Sandbox Alpha. After four years of development, Sandbox opened its metaverse to a select group through an exclusive Alpha pass. This play-to-earn event allowed a limited number of participants to explore and engage in the Sandbox metaverse, creating a sense of exclusivity and demand.
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Partnerships and Fundraising: Sandbox secured a substantial $93 million fundraising round in November, led by SoftBank. The infusion of capital is intended to scale and enhance Sandbox as a prime entertainment destination within the metaverse. Notable partnerships with influential brands like Snoop Dogg and The Walking Dead have added to Sandbox's credibility and user engagement.
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Investment Considerations: The article provides insights into the investment landscape, emphasizing the speculative nature of the cryptocurrency industry. It cautions investors to consider the potential risks and volatility associated with crypto investments. The mention of ARK Invest's Cathie Wood expressing optimism about the metaverse as a multi-trillion dollar opportunity adds a broader perspective.
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Evaluation of SAND's Potential: The article encourages investors to evaluate Sandbox's long-term potential, considering factors like competition from big players like Meta and the overall management team's competence. It advises against succumbing to the fear of missing out and urges investors to assess how SAND may perform in the coming years.
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User Experience and Investment Platforms: The recommendation to explore Sandbox's virtual world through the Alpha Hub without spending money highlights the importance of firsthand experience. Additionally, information about SAND being listed on major U.S. cryptocurrency exchanges, such as Gemini, Crypto.com, and Kraken, provides practical guidance for potential investors.
In conclusion, Sandbox's meteoric rise is a confluence of strategic launches, partnerships, and the broader trend of metaverse adoption. However, the article rightly cautions investors about the inherent risks in the crypto market and emphasizes the need for thorough evaluation before making investment decisions.
