The price of SAND has been rising since April 17, and the bullish trend is gaining momentum each day.
At the time of writing, SAND is trading at $2.94, up 11.18% over the past 24 hours. It reached a daily high of $2.99 and a daily low of $2.61.
Current trading volume stands at $522.46 million, substantially higher than the $225.07 million recorded on April 17.
This article examines the main factors driving SAND’s recent price increase.
Why is the SAND price rising?
Before exploring the drivers of the recent rally, it helps to briefly explain what The Sandbox and SAND are.
The Sandbox is a blockchain-based virtual world developed by Animoca Brands that enables users to create, buy, and sell digital assets. It launched in 2011, and SAND is its native utility token.
Below are the key reasons behind the current upward movement in SAND’s price.
Plans to raise $400 million
One major factor contributing to the recent price surge was a Bloomberg report suggesting the team behind The Sandbox plans to raise an additional $400 million. That fundraising could push the platform’s valuation to around $4 billion.
It’s worth noting The Sandbox previously completed a sizable funding round in November 2021, raising $93 million in a round led by SoftBank.
The team has not finalized the new fundraising details yet, and the timing and structure will depend on market conditions.
Sandbox’s roadmap for the platform
This time The Sandbox is presenting a clearer roadmap for expanding its metaverse platform.
The project has also attracted notable organizations, such as HSBC, which earlier this year expressed interest in purchasing virtual land (LAND) and collaborated with The Sandbox on related initiatives.
Rumors of an IPO
There have been rumors that The Sandbox is preparing for an initial public offering (IPO). However, Sebastien Borgen, co-founder and CEO of The Sandbox, has denied those rumors.