All about SAND’s latest security threat: Are your holdings safe?
- The Sandbox was the latest project to experience a security issue.
- SAND struggled to bounce back after interacting with the 2-day MA due to low demand.
Every once in a while, a crypto project goes through security challenges that often fool investors. The sandbox [SAND] is the latest project to report such an experience following its recent announcement.
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On March 2nd, The Sandbox issued a statement stating that there had been a security breach towards the end of February. The incident reportedly happened after a third party accessed an employee of the project. The perpetrator then used the company’s email addresses to send emails containing malware.
SandBox is aware that an unauthorized third party has gained access to an employee’s computer. This gave the third party access to a range of email addresses, to which it then sent an email falsely claiming to be from The Sandbox. The email contained hyperlinks to malware… https://t.co/eqsv5Cvsgr
— Wu Blockchain (@WuBlockchain) March 2, 2023
Did the incident affect SAND?
According to the report, the malware contained in the email may be remotely installed on other devices. However, this is only the case if the user clicks on links contained in the email containing the malware. The sandbox revealed that it has already contacted those who received the malicious actor’s email.
The sandbox has not reported any incidents affecting platform users and no serious impact has been observed to date. However, this does not mean that the incident cannot have an impact. Such an incident, depending on its severity, has the potential to affect investor sentiment.
A quick review of SAND’s price action showed that price movements were within normal range at press time. The price at press time of $37 represented a 25% decline from its 2023 peak. This meant that the price was already declining at the time of the incident and a potential impact may already have been priced in.
Source: TradingView
SAND showed signs of support near the $36 price range. This is to be expected as the price was trading at the 200-day ma at press time. Also, the 50-day MA formed a gold cross with the 200-day MA.
A quick look at the distribution of supply showed that most of the best whale categories are no longer sold. This confirmed the price watch, where selling pressure seemed to be easing. However, the lack of robust accumulation also highlighted why the bulls appeared reluctant to take the lead.
Source: Santiment
Realistic or not, here is SAND’s market cap in BTC terms
The lack of strong bullish demand reflected sentiment at press time. The weighted sentiment gauge ended February slightly lower, confirming that investors are not yet excited about a bullish outlook. One possible reason for this was the recent token unlocks, which may have taken investors by surprise. In addition, development activity has eased off slightly over the past three days.
Source: Santiment
Despite these observations, investor sentiment at the time of writing favors a long-term HODL preference for SAND. This was reflected in the mean coin age, which has been recovering in recent days.