Overview
The Sandbox platform, a popular metaverse, is cutting more than half of its approximately 250 employees as it restructures under the direct control of Animoca Brands, its majority shareholder. This significant shift comes as the number of daily active users has dwindled dramatically, and the company is set to close offices worldwide.
Key Points
- Layoffs and Office Closures: Over 50% of the workforce is being let go, with various global locations, including offices in Argentina, Uruguay, South Korea, Thailand, and Turkey, expected to shut down along with the company’s headquarters in Lyon.
- Leadership Changes: Co-founders Arthur Madrid and Sebastien Borget are being replaced by Yat Siu, the CEO of Animoca Brands.
- Financial Struggles: The SAND token’s value has plummeted nearly 90% from its all-time high, raising concerns about the company’s estimated treasury of $100 million to $300 million, largely derived from virtual land sales during the metaverse boom in late 2021.
Despite raising a total of $300 million over the past eight years, the platform faces hurdles in engaging users as its daily active user count has fallen to just a few hundred, with many believed to be bots, particularly from South America.
The night operations at The Sandbox are limited, having only seen a few governance votes after the major restructure was announced. The company did not immediately respond to inquiries for further comment.
