Sandbox, Gala: Why are Ethereum whales selling meta tokens?

Lavina Daryanani
Source: XR Today

Apart from HODLing tokens for long periods, whales are also quite active traders. They carry forth large transactions daily and observing their movements, other market participants get cues to buy or sell tokens. Over the past day, two prominent meta tokens – The Sandbox [SAND] and Gala [GALA] made it to the top 10 sold tokens list.

As per whale data aggregating platform WhaleStats, the top 1000 Ethereum wallets have sold over 1601 SAND tokens [worth $4,573] and 14,806 GALA tokens [worth $3,471] in the past 24-hours. Neither of the said meta tokens made it to the corresponding top purchased tokens list, indicating the induction of whale side sell pressure.

Source: WhaleStats

GALA and SAND’s tale of diminishing returns

From its $8.48 peak registered towards the end of November last year, The Sandbox is currently down by more than 200%. At the time of press, this token was seen exchanging hands at merely $2.7.

Similarly, GALA was worth $0.21 at press time and was down by 290% relative to its $0.84 peak registered alongside SAND in November last year.

In/Out of the Money – GALA || Source: ITB

Now, as a result of the declining returns, the number of addresses in profit has substantially reduced over time. Data from ITB brought to light that merely 21% of the GALA addresses were ‘in the money,’ while close to 70% of them were ‘out of the money’ and the remaining were in a no-loss no-gain state.

SAND’s profitability numbers, on the other hand, were even more discouraging. Merely 13% of the addresses were in profit while the remaining 87% of them were in loss.

In/Out of the Money – SAND || Source: ITB

Here, it is essential to note that 54% of GALA’s supply is held by whales, while the number is as high as 84.7% for SAND.

Thus, given the fact that the majority of investors of these tokens are at a loss and whales have already started disposing of their tokens, it wouldn’t be wrong to speculate that other market participants too would follow suit and soon begin re-directing their funds towards better RoI providing alts.