$SAND Suffers $745M Token Manipulation Incident
$SAND, the native token of Sandbox, has been affected by an unusual minting activity. The blockchain security firm PeckShield revealed that nearly 14.9 billion tokens were abnormally created across two addresses. This incident has raised concerns about a potential exploit affecting the token's supply mechanism.
The reported creation of 14.9 billion additional tokens represents several times $SAND's intended maximum supply of 3 billion tokens. If the newly minted tokens are transferable and enter circulation, existing SAND holders could face significant dilution, potentially causing the price to fall.
South Korean cryptocurrency exchanges Bithumb and Upbit have temporarily suspended $SAND deposits and withdrawals in response to the news. The Sandbox team has not officially confirmed the suspected exploit. It is unclear whether the newly minted tokens had been sold or deposited into exchanges.
The abnormally minted SAND carries a high notional value of roughly $745 million at an estimated price of $0.05 per token. The price of $SAND reacted to the news, falling about 10% to $0.46.