The Sandbox Founders Exit as Animoca Assumes Full Control in Major Overhaul

Metaverse platform The Sandbox is undergoing a transformation following the departure of its co-founders and a majority takeover by Animoca Brands.

Key Takeaways:

• The Sandbox founders have exited operational roles as Animoca Brands takes full control.
• Over half of the company’s workforce has been laid off amid a major restructuring.
• Animoca may be positioning The Sandbox’s crypto treasury for a potential IPO in Hong Kong.

According to a report by The Big Whale, co-founders Sébastien Borget and Arthur Madrid have stepped back from operational roles, with over half of the company’s workforce also let go.

Robby Yung, CEO of Animoca Brands, has been appointed as the new CEO of The Sandbox.

Borget remains involved as a public ambassador, while Madrid assumes a non-executive chairman position.

“Sébastien and Arthur are stepping away from strategic operations and no longer hold executive powers,” a source reportedly told The Big Whale.

Borget confirmed the change but said he continues to represent the brand globally.

Behind the leadership shake-up is growing dissatisfaction with The Sandbox’s performance. Despite raising $300 million over the past eight years, the platform has failed to gain traction among users.

Daily active usage reportedly numbers in the low hundreds, with many flagged as bots, particularly from South America.

Its native token, SAND, has fallen more than 95% from its 2021 highs, with its market cap plummeting from $8 billion to around $700 million.

Animoca has done many raises using convertible notes

One of relevance to the recent news about Sandbox closing down

In September 2022 – They raised $110m on a 3yr term due September 2025

Going to be interesting to see the moves Animoca make over coming weeks pic.twitter.com/uQzVqWS30f

The reorganization includes significant layoffs across multiple regions. Over 50% of the company’s 250 staff have been cut, with offices in Argentina, Uruguay, South Korea, Thailand, and Turkey closing.

France’s Lyon office is also set to shut down, with additional job cuts expected in Paris.

Officially, the company attributes the changes to a “strategic turnaround” enabled by more efficient development tools.

However, sources suggest a deeper pivot is underway. Animoca Brands is reportedly preparing for a potential IPO in Hong Kong and sees The Sandbox’s crypto treasury, estimated between $100 million and $300 million, as a valuable asset for investor positioning.

The Sandbox now appears to be refocusing beyond its original metaverse ambitions.

According to insiders, the team is working on a memecoin launchpad on Base, inspired by Pump.fun, suggesting a move into broader Web3 territory.

“The context has evolved and projects must adapt accordingly,” said one investor familiar with the situation. Borget added, “We’ve always maintained our focus on gaming, but we must consider market trends.”

The changes also mark the end of a defining era in NFT gaming. The Sandbox once symbolized the metaverse boom, attracting brands and institutions between 2019 and 2022.

Now, with its founders sidelined, workforce halved, and strategy redirected, the platform is being forced to reinvent itself.

Earlier this week, blue-chip NFT collections like Pudgy Penguins, BAYC, and Doodles saw sharp weekly floor price drops following a pullback in Ether from its all-time high.

While most collections suffered double-digit declines, CryptoPunks remained relatively stable, losing just 1.35%.

Despite falling prices, trading volumes stayed high, with Pudgy Penguins and Moonbirds leading the market.

The overall NFT market cap also dropped nearly 5% to $7.7 billion after peaking at $9.3 billion earlier in the month.

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