The Sandbox, a metaverse-centric branch of Hong Kong’s Web3 company Animoca Brands, is undergoing a strategic restructuring, with co-founders assuming new roles.
Co-founders Arthur Madrid and Sebastien Borget are transitioning as part of The Sandbox’s ongoing optimization efforts, Borget told Cointelegraph on Thursday.
Arthur Madrid has shifted from CEO to chairman, while Borget will serve as the global ambassador, representing The Sandbox at various industry events around the globe.
“Both continue to play vital roles in The Sandbox and its ecosystem, with significant announcements expected later this year through the appropriate channels,” Borget noted.
AI advancements lead to workforce reduction
The restructuring will also see staff layoffs, as confirmed by Borget to Cointelegraph, although he did not disclose specific numbers.
“As The Sandbox evolves, we are constantly refining our operations for enhanced efficiency,” stated the executive, mentioning that part of this strategy includes leveraging advancements in artificial intelligence.
“The advancements in AI within gaming are well documented, allowing us to accelerate the deployment of content, features, and LiveOps while operating with a slimmer, more resilient team,” Borget added:
“Making personnel decisions is challenging and not taken lightly, but these adjustments are essential for adapting to technological progress and ensuring The Sandbox’s long-term viability,” he remarked.
Besides AI advancements, The Sandbox will also leverage resources and shared services from Animoca Brands, Borget informed Cointelegraph.
Reports indicated 50% staff layoffs
Borget’s remarks came after previous reports suggested that The Sandbox was eliminating at least 50% of its workforce, with founders being sidelined.
Additionally, the platform is rumored to be planning to launch a memecoin on Coinbase’s layer-2 network Base, similar to the Solana-based Pump.fun marketplace that enables token creation and distribution.
While Borget refrained from commenting on market speculation regarding upcoming initiatives from The Sandbox and Animoca, he highlighted that both companies remain dedicated to empowering creators and fostering the growth of their token economy as their primary mission.
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“The Sandbox’s digital assets, including the $SAND token, LANDs, NFT collections, and various ecosystem assets, will remain unchanged,” he reassured.
SAND has dropped 70% since 2024
The restructuring of The Sandbox arrives as the platform’s utility token, SAND, has depreciated by about 70% since late 2024.
According to CoinGecko, SAND was trading at $0.28 at the time of publication, nearly 97% below its all-time high of $8.4 in November 2021.
The SAND token was introduced through a Binance Launchpad initial exchange offering in August 2020. The crypto asset experienced substantial growth ahead of The Sandbox’s launch of its play-to-earn metaverse in November 2021, reaching a market capitalization of $6.8 billion at its peak.
As of publication, SAND’s market capitalization stands at $687 million.
Additional reporting by Brayden Lindrea.
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