Recently, MetaMetric Solutions noted that numerous land parcels in The Sandbox metaverse are being priced at a loss. In light of this statistic, the data provider also noted that now is the right time to add or bid undervalued parcels of The Sandbox. The big question, however, is why people are selling parcels of The Sandbox LAND at a loss.
A decline in the value of The Sandbox token
The Sandbox token, SAND, has experienced a negative trend in recent weeks. While SAND has experienced a rise in value over the past 24 hours, its current price – $2.16 – is far less than the coin’s all-time high of $8.40.
In addition, SAND volumes have steadily declined since the token’s promotion period in late 2021. This could explain why many want to sell their land, whether they make a profit or not.
Past the initial hype
According to a report from Messari: “As the volatile first quarter of 2022 has come to a close, LAND’s secondary sales volume declined 54% compared to the previous quarter. To put it in perspective, secondary sales volume in Q1 2022 is still up 865% compared to Q3 2021.”
This quarter’s decline is related to the fact that metaverse hype is settling down after reaching an all-time high with Facebook’s rebranding announcement. Therefore, the market is finding an equilibrium. Although demand is lower than in Q4 2021, it is still quite healthy.
Owners can also sell LAND, as digital land is still in the early days when it comes to building experiences. Currently, creators cannot make LAND experiences available to other users of The Sandbox. In addition, the available experiences do not have many P2E elements in them; which obviously works as an incentive for engagement. As a result, LAND owners may be at a loss as to what they can do with their investment, which could lead them to make the decision to sell it.
However, this obstacle is only temporary, especially for high-profile investors. Recently, Hong Kong’s billionaire Lo family, of the Regal Hotel Group, snapped up a plot of land in The Sandbox. This shows that metaverse plots are a long-term investment for these individuals.