Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The Sandbox, a metaverse platform, is experiencing a significant shift following the exit of its co-founders and a complete takeover by Animoca Brands.
Key Takeaways:
- The founders of The Sandbox have left their operational positions as Animoca Brands assumes full ownership.
- More than half of the company’s staff has been laid off during a substantial restructuring process.
- Animoca may be positioning The Sandbox’s cryptocurrency treasury for a potential initial public offering (IPO) in Hong Kong.
A report from The Big Whale indicates that co-founders Sébastien Borget and Arthur Madrid have withdrawn from their operational roles, with a significant portion of the workforce also being let go.
Robby Yung, the CEO of Animoca Brands, has been appointed as the new CEO of The Sandbox.
Borget Takes on Ambassador Role as Madrid Becomes Non-Executive Chairman
Borget will continue to serve as a public ambassador, while Madrid will take on the role of non-executive chairman.
“Sébastien and Arthur are stepping away from strategic operations and no longer hold executive powers,” a source reportedly informed The Big Whale.
Borget confirmed this transition but stated that he will still represent the brand on a global scale.
This leadership change is driven by increasing dissatisfaction with The Sandbox’s performance. Despite raising $300 million over the last eight years, the platform has struggled to attract users.
Reportedly, daily active users are in the low hundreds, with many identified as bots, particularly from South America.
The platform’s native token, SAND, has decreased by over 95% from its peak in 2021, with its market capitalization dropping from $8 billion to approximately $700 million.
Animoca has conducted several fundraising rounds using convertible notes
One of significance to the recent news regarding Sandbox’s closure
In September 2022 – They raised $110 million on a 3-year term due in September 2025
It will be interesting to observe the actions Animoca takes in the upcoming weeks pic.twitter.com/uQzVqWS30f— 𝐁𝐋𝐎𝐗𝐗
(@metabloxx) August 28, 2025
The reorganization involves significant layoffs across various regions. More than 50% of the company’s 250 employees have been let go, with offices in Argentina, Uruguay, South Korea, Thailand, and Turkey closing down.
Related Posts
The office in Lyon, France, is also set to close, with further job reductions anticipated in Paris.
Officially, the company attributes these changes to a “strategic turnaround” facilitated by more efficient development tools.
However, sources indicate that a more profound pivot is in progress. Animoca Brands is reportedly preparing for a potential IPO in Hong Kong and views The Sandbox’s cryptocurrency treasury, estimated to be between $100 million and $300 million, as a significant asset for attracting investors.
The Sandbox Expands Focus Beyond Metaverse
The Sandbox now seems to be shifting its focus beyond its initial metaverse goals.
According to insiders, the team is developing a memecoin launchpad on Base, inspired by Pump.fun, indicating a move into broader Web3 domains.
“The context has evolved, and projects must adapt accordingly,” remarked 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 signify the conclusion of a notable era in NFT gaming. The Sandbox once epitomized the metaverse boom, attracting brands and institutions from 2019 to 2022.
Now, with its founders sidelined, workforce reduced, and strategy redirected, the platform is compelled to reinvent itself.
Earlier this week, prominent NFT collections such as Pudgy Penguins, BAYC, and Doodles experienced significant weekly floor price declines following a pullback in Ether from its all-time high.
While most collections faced double-digit drops, CryptoPunks remained relatively stable, with a loss of just 1.35%.
Despite declining prices, trading volumes remained robust, with Pudgy Penguins and Moonbirds leading the market.
The overall NFT market capitalization also fell nearly 5% to $7.7 billion after reaching a peak of $9.3 billion earlier in the month.
The post The Sandbox Founders Exit as Animoca Assumes Full Control in Major Overhaul appeared first on Cryptonews.
