- Sandbox price jumped as the company seeks to raise money.
- It is raising $400 million at a $4 billion valuation.
- The fundraising comes a few months after it raised cash from Softbank.
The Sandbox price jumped sharply in the overnight session as investors cheered the growth of the platform. SAND, its native token, has risen by over 10% in the past 24 hours, bringing its total market cap to more than $3.50 billion.
Why is SAND rising?
Sandbox is one of the biggest metaverse project in the world. The network has features that people buy virtual property, trade NFTs, and even play games. Its flagship game is known as Alpha and is held once every few months.
Sandbox also has tools that let anyone create their own games without doing any coding and for free. One just needs to make a few selections and then share it with the community.
The Sandbox has grown this rapidly because of the strong funding that the developers have. In 2021, they raised millions of dollars from the likes of Softbank, the company run by Masayoshi Son.
Now, it seems that the company has recorded spectacular growth even as the Sandbox price has dropped sharply from its all-time high.
Media reports say that the company is looking to raise $400 million at a $4 billion valuation. If the firm is successful, it will make it one of the biggest companies in the blockchain industry.
Sandbox is mostly owned by Animoca Brands, a company that also owns REVV Motorsports, Phantom Galaxies, Tower Experiment, and Benji Bananas. It has also invested in tens of blockchain projects.
Sandbox becomes one of the many blockchain companies that have raised millions this year. For example, Mina Protocol recently raised $93 million from investors. Similarly, Near Protocol raised over $300 million from venture capital firms. Other companies that raised include Ava Labs which raised $350 million and Moonpay which raised $87 million.
Sandbox price prediction
The four-hour chart shows that the SAND price has been in a strong bullish trend in the past few days as investors cheer the new fundraising. The coin is trading at $3, which is about 18% above the lowest level last week. It has moved above the key resistance level at $2.71 while it has risen above the 25-day and 50-day moving averages.
Therefore, there is a likelihood that the Sandbox price will keep rising as investors target the upper side of the channel at $3.42.
