$SAND, the native token of The Sandbox ecosystem, is facing strong selling pressure following reports of a potential vulnerability allowing for the unlimited creation of tokens. Initial reports indicate that a malicious actor gained access to the token minting capabilities for $SAND and could create any number of new tokens. However, the vulnerability and the scale of the attack have not been officially confirmed by The Sandbox team.
According to claims circulating on social media and activity-tracking accounts, over 500 million new $SAND tokens were created by exploiting the security flaw. If these claims are true, this represents an extremely serious security breach that could directly impact the token supply.
Following the allegations, market activity has increased significantly. The price of $SAND fell by approximately 5.5% in a short period, while open interest (OI) for futures reportedly increased by around 16% in an hour. Trading volume also reached about 24 times the normal level, indicating high activity among price movement participants.
However, the sharp shift of funding rates into negative territory indicates significant accumulation of short positions in the market.
*This is not investment advice.
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