The Sandbox Metaverse Dream Shattered: Founder Steps Down, Over Half of Employees Laid Off, Animoca Takes Over Completely

Once a representative of the NFT gaming and Metaverse wave, The Sandbox has now reached a turning point in its fate. According to The Big Whale, two co-founders have exited the management team, with the parent company Animoca Brands taking over, and more than half of the employees have been laid off, indirectly symbolizing the end and reshuffling of the golden age of the Metaverse.

The Sandbox Layoffs: Founder Steps Down, Animoca Takes Over

According to informed sources, The Sandbox co-founders Sébastien Borget and Arthur Madrid have been removed from their management positions. Animoca Brands CEO Robby Yung will take over The Sandbox. Borget will transition into an ambassador role, responsible for representing the project externally; while Madrid will only retain a symbolic position as a non-executive director.

This adjustment symbolizes that the two founders no longer hold decision-making power. Borget admitted to the newspaper: "I am still the person who best represents The Sandbox globally, but we must adapt to the new era."

At the same time, a wave of layoffs covering the globe has followed closely. The Sandbox had a total of about 250 employees at the beginning of this year, and now more than half have been laid off. The regions most affected include Argentina, Uruguay, South Korea, Thailand, and Turkey. In France, the Lyon office is expected to close, and about ten employees in Paris also face the risk of layoffs.

The official reason given is "strategic shift," hoping to continue advancing the company with a smaller team size.

A 300 million investment leads to a slump: Token crash after user loss

Animoca has invested over $300 million in the past eight years, but the results have been far below expectations. The actual daily active users of The Sandbox are down to just a few hundred, and many accounts from South America have been questioned as being bots.

As for the price of the currency, since the peak of the Metaverse craze in 2021, the platform token SAND has dropped by 95%, with its market value shrinking from 6.2 billion dollars to 700 million dollars.

The star project Decentraland during the same period is also on par, with the token MANA dropping by 94%, and development progress has nearly come to a standstill. These figures reflect the fact that the Metaverse has long been in a frozen state.

Will the remaining funds pave the way for Animoca's IPO?

Although operations are sluggish, The Sandbox still holds between 100 million to 300 million USD in crypto assets, primarily ETH and stablecoins, becoming a strategic chip for its parent company Animoca. A senior executive stated: "Animoca may be preparing for an initial public offering in Hong Kong (IPO)."

The successful listing of stablecoin issuer Circle in the spring has brought new ideas for Animoca, and this cash is also expected to serve as a highlight to attract investors.

Recently, Animoca has partnered with Standard Chartered Bank to promote the future issuance of stablecoins. If the funds from The Sandbox are also included, it will help strengthen its position in the global financial narrative.

Strategic Shift: The Metaverse Dream Shattered, Meme Coin Launch Platform Takes Over

It is worth noting that Animoca seems to have shifted its focus from the Metaverse to the emerging speculative frenzy. Reports indicate that The Sandbox will keep up with the recent trend of self-issued tokens by launching a meme coin issuance platform based on the Base network.

Borget stated: "We still value games, but we must also consider market trends." The words reveal a shift in the company's strategy; as the allure of NFT games and virtual land fades, this is not only The Sandbox's self-rescue but also a nod to reality.

The Rise and Fall of a Giant: The Past and Present of The Sandbox

The Sandbox was once an important symbol in the crypto space, attracting various brands, celebrities, and international companies to invest in the Metaverse and NFT from 2019 to 2022, becoming a hot topic at the time. However, as the gaming experience faced criticism, users continued to leave, and excessive marketing occurred, the company gradually fell into decline.

The TIME Magazine's annual list of the 100 most influential companies is out! OpenSea and Sandbox made the list.

A former partner summarized: "The Metaverse is not dead, but it must completely reshape itself." The upheaval of The Sandbox today is not only a rewriting of the company's strategy but also marks the end of an era for the entire NFT gaming generation.

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