$SAND Tokens Plummet Amid Allegations of Unlimited Minting Vulnerability

The Sandbox ecosystem's native token, $SAND, is facing heavy selling pressure after reports emerged of an alleged security vulnerability. According to claims on social media and online activity trackers, an attacker gained access to $SAND minting capabilities, allowing them to create an unlimited number of new tokens.

Initial reports suggest that over 500 million new $SAND tokens were created using this vulnerability. If true, this would represent a serious security breach affecting the token's supply. Market activity surged in response, with the $SAND price dropping by approximately 5.5% and open interest in futures increasing by about 16% within an hour.

The sharp turn in funding rates into negative territory indicates a significant accumulation of short positions in the market. The increased trading volume reached approximately 24 times normal levels, indicating high participation in the price movement.