The Sandbox surprises the market and implements a KYC process to release staking By CriptoFacil

2023-08-03 23:10:17

© Reuters. The Sandbox surprises the market and implements a KYC process to release staking

CriptoFácil – The sandbox metaverse platform announced on August 3 that it will require identity verification (KYC) for its SAND staking processes.

The announcement highlighted that only verified users could deposit SAND tokens, native to the platform, and claim staking rewards. Meanwhile, unverified users will be placed in withdrawal mode only.

The statement surprised the cryptocurrency market and displeased a large part of The Sandbox community, claiming centralization and measures contrary to the cryptocurrency market, based on privacy and data control by users.

Data from blockchain analytics firm Messari shows that 123 million SAND, or 6.7% of the token’s circulating supply, are currently being staking by users.

“To increase security and user compliance, we implemented KYC verification for our staking process. Our goal is to ensure that our users’ accounts are verified before they can participate in staking or claim their winnings.”, said The Sandbox team.

The Sandbox

On June 6, the United States Securities and Exchange Commission (SEC) considered SAND as a security in its latest lawsuits against Binance and Coinbase (NASDAQ:).

SAND was implemented on the blockchain in 2012 by San Francisco gaming company Pixowl. In 2018, Hong Kong-based Animoca Brands acquired Pixowl through its subsidiary TSB Gaming, with the intention of building a 3D metaverse using blockchain technology.

Citing numerous initial exchange offerings and private sales conducted by developers over the years, the SEC claims that the SAND is a security and therefore could not have been launched in the US without regulator approval.

“Information publicly disclosed by TSB has led SAND holders, including those who have purchased SAND since May 2022, to reasonably view the SAND as an investment and to expect to profit from TSB’s efforts to grow the Sandbox protocol, which, for in turn, would increase the demand and value of the SAND.”

Since the publication of the lawsuit against Coinbase, Animoca Brands co-founder Yat Siu has criticized the lack of consistency regarding SEC regulations and praised Hong Kong’s change in attitude towards blockchain.

By CriptoFacil