Sandbox, the virtual world platform founded in 2011 by French entrepreneurs Sébastien Borget and Arthur Madrid, is facing a storm of its own as the metaverse dream comes under pressure.
According to a report from The Big Whale, the company has decided to lay off more than half of its staff, over 250 employees. At the same time, its main investor, Animoca Brands, has moved to replace the two founders from their operational roles. Animoca’s CEO, Robby Yung, has now taken over leadership of the company.
Based in San Francisco, The Sandbox had long been seen as one of the last big players holding out in the metaverse race, those digital universes once hailed as the future of the internet. But the company is now facing harsh economic reality. According to The Big Whale, the value of its native token SAND has dropped by about 95%, plunging from a market capitalization of $8 billion to just $700 million.
The company itself has also lost significant value. Its overall valuation fell from $4 billion in 2022 to around $1 billion in 2024, reflecting the cooling investor sentiment around metaverse projects. Despite having poured $300 million over the past eight years into building its virtual world, The Sandbox is reportedly struggling to attract users. Only a few hundred people log in daily and, according to The Big Whale, some of those accounts may even be automated bots rather than real players.
Global Offices Shutting Down
Faced with these setbacks, majority shareholder Animoca Brands has decided to take drastic action. The company has launched a sweeping restructuring plan that will see The Sandbox shut down several of its international offices including in Argentina, Uruguay, South Korea, Thailand, and Turkey. Even its French hub in Lyon is expected to close.
The shake-up comes as the broader metaverse dream shows signs of fading. Even Meta CEO Mark Zuckerberg, once its loudest advocate, has scaled back ambitions after pouring around $21 billion into the project over the past two years, shifting the tech giant’s focus to artificial intelligence. For The Sandbox, the path forward may now depend on a major pivot likely toward new Web3 services, if it wants to survive the downturn.
