The Sandbox is awesome and it's honestly one of the coolest projects in crypto. I have no doubt that it will be successful and provide players with a fun way to game that also incorporates their favorite hobby, crypto. However, $SAND as an investment has been pretty rocky. It's one of the most inflationary coins out at the moment, and the team gives them out like candy to accounts that engage their platform. Not to mention the high staking rates, etc... The downward pressure is crazy on the price of SAND. I'm sure there will be people who get rich catching the bottom and staking, but for now it appears many more people will lose a ton of money until SAND has been widely distributed.
I'm not sure that the fall of SAND is caused by the distribution of many tokens, if we look at the entire market, we see that the entire cryptocurrency has fallen by 90-95%. I played it and participated in Sandbox season 2-3 I am very pleased with the game, I will enjoy playing it.
I believe its inflation rate is close to 30% currently. You cant have an inflation rate that high and expect not to devalue the currency. Theres also the issue of cheating. Many people have found out how to cheat the Sandbox events to claim SAND with hundreds of accounts, which they then dump on the market. The team has gotten better at fighting fraud with the recent season, but its still very much an issue. Once the inflation rate comes down and they figure out how to stop all the fraud and cheating, it might be a good project to invest in. As of now, its a fun game to get a glimpse of the future of gaming with web3. Its still a long ways off though.