The Sandbox, a once-prominent name in the metaverse realm, is witnessing turbulent times as it restructures, shedding over half of its workforce amid a significant leadership change. According to a report from French crypto outlet The Big Whale, the company’s co-founders, Arthur Madrid and Sebastien Borget, have stepped back from their executive roles. This transition marks a new chapter under the guidance of Yat Siu, CEO of Animoca Brands, which holds a majority stake in The Sandbox.
A Metaverse in Crisis
This restructuring is not just about personnel changes. The Sandbox plans to close its offices in Argentina, Uruguay, South Korea, Thailand, and Turkey, with its headquarters in Lyon also on the chopping block. Insiders suggest that this sweeping overhaul underscores the platform’s struggle to convert years of hefty investments into lasting user engagement. Despite raising an impressive $300 million over the past eight years, the platform’s daily active users have dwindled to a mere few hundred, with many suspected of being bots primarily active in South America.
The SAND Token’s Tumultuous Journey
The Sandbox’s native token, SAND, is feeling the heat too. Even as the broader cryptocurrency market enjoys an “altcoin season,” SAND’s performance has been lackluster. From a market cap high of $6.2 billion in 2021, it has plummeted to approximately $700 million—a stark 90% decline. As crypto markets buzz with activity, SAND’s struggle raises eyebrows about its future viability. This trend is echoed in Bitcoin, Ether ETF Flows Hint at Incoming Altcoin Bull Run: Crypto Daybook Americas, which discusses the broader altcoin market dynamics.
Experts are quick to point out that the challenges facing The Sandbox are not unique in the metaverse sphere. “The metaverse was always going to be a long game,” notes crypto analyst Jane Liu. “Immediate returns were never guaranteed, and many players are now realizing how steep the climb is.”
The Treasury Conundrum
Another looming question is the fate of The Sandbox’s crypto treasury, which is believed to hold between $100 million and $300 million—much of it from selling $350 million worth of “virtual land” during the metaverse heyday in late 2021. Rumors swirl that this could go to a governance vote, yet engagement remains a concern. In August, only 291 votes were cast across three proposals, highlighting a potential disconnect between token holders and platform governance.
This restructuring and the treasury’s uncertain fate raise broader questions about The Sandbox’s direction under Animoca Brands’ control. Yat Siu’s leadership could bring renewed focus, but it also might mean tightening the reins on a platform that once promised boundless virtual freedom.
Looking Ahead
The metaverse, once hailed as the future frontier, is now grappling with the sobering reality of its ambitious promises. The Sandbox’s current struggles serve as a cautionary tale for other players in the space, emphasizing the importance of sustainable growth over rapid expansion. While the platform’s future remains uncertain, its journey is far from over. The coming months will be crucial in determining whether The Sandbox can pivot effectively and re-engage its community or if it will become another footnote in the metaverse’s evolving story. For a broader perspective on potential market shifts, see This Altcoin Is A 12,500% Crypto Bet Until 2028, Says Arthur Hayes.
For now, industry watchers and investors alike will be keeping a close eye on how Animoca Brands steers this iconic platform into its next chapter. The question is not just whether The Sandbox can survive this turbulent period, but how it can redefine itself in a rapidly changing digital landscape.
Source
This article is based on: The Sandbox Cuts Half of Its Staff, Restructures as Animoca Brands Take Control
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
