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Metaverse platform The Sandbox has announced a sweeping business restructuring that includes cutting more than 250 employees — nearly half its workforce — and a dramatic pivot in strategy.
Response to Recent News About Changes at The Sandbox:
Media reporting about recent updates at The Sandbox has included various inaccurate or out-of-context claims, despite the fact that we provided some of those media outlets with information and clarification prior to…
— The Sandbox (@TheSandboxGame) August 28, 2025
As part of the shake-up, co-founders Sébastien Borget and Arthur Madrid will step down from day-to-day management, marking the end of an era for the company once seen as a flagship of the metaverse boom. Going forward, The Sandbox will shift its focus from developing complex 3D virtual worlds to building a meme coin launchpad on the Base blockchain.
From Metaverse Darling to Market Struggles
The Sandbox gained global attention during the 2021 NFT craze, attracting thousands of daily active users at its peak. But interest has waned dramatically: today, active users number only in the hundreds.
The project’s native token SAND has plummeted 96.6% from its all-time high of $8.40 in November 2021. Its overall valuation, once estimated at $4 billion in 2022, has dropped to just $1 billion by 2024.
This steep decline reflects a broader loss of enthusiasm for metaverse platforms, forcing The Sandbox to reconsider its long-term direction.
Instead of investing in large-scale 3D environments, The Sandbox will now develop a simpler blockchain service: a launchpad for meme coins, tapping into one of crypto’s fastest-growing trends. The new platform will be built on Base, a layer-2 blockchain backed by Coinbase.
Leadership Shift Under Animoca Brands
Ownership and leadership are also changing. Animoca Brands CEO Yat Siu will become the new CEO of The Sandbox. The two co-founders will fully step away from operational roles.
The restructuring will heavily affect international teams in Argentina, Uruguay, South Korea, Thailand, and Turkey, while the Lyon, France office will be shut down. The company clarified that many of the closures involve small satellite offices with just one to three contractors.
Funding and Reality Check
The Sandbox previously raised $93 million from SoftBank in 2021 and secured another $20 million from Animoca Brands in June 2024. But the strategic pivot underscores the harsh reality: the metaverse hype cycle has cooled, and projects must adapt to survive.
This move positions The Sandbox at the intersection of blockchain’s newest wave — meme coins — as it seeks to remain relevant in an evolving digital economy.
