Sandbox layoffs have reached a important milestone because the metaverse platform that throughout the NFT increase raised $93 million from SoftBank undergoes a dramatic transformation by shedding 250 staff — half its workforce — and pivoting to a memecoin launchpad enterprise mannequin.
Abstract
- The Sandbox is shifting from a recreation and metaverse that, at one level, had hundreds of customers however is now dwindling to a whole lot, outstanding analysts say.
- The entity will now shift towards a memecoin launchpad mannequin, not dissimilar from platforms like Pump.enjoyable.
- Questions stay as to what the slashing of over half its workforce will imply for the Animoca Manufacturers-managed Sandbox.
Digital world pioneer The Sandbox is reportedly planning to put off greater than half of its workforce and substitute its co-founders with a brand new CEO, marking a dramatic shift for the once-prominent metaverse platform.
The information, first reported by French journalist Gregor Raymond on August 28, indicators what many business observers view as an inevitable reckoning for an organization that has struggled to justify its valuation amid declining curiosity in digital worlds and NFT gaming.
Based by Arthur Madrid and Sebastien Borget, The Sandbox emerged as a flagship challenge throughout the 2021 NFT increase, promising immersive digital experiences and digital actual property alternatives.
The corporate has to date not commented on the report, although response on-line has been one among muted expectations for metaverse initiatives, significantly within the newest cycle.
This potential transformation — from metaverse gaming platform to what sources recommend might be a memecoin buying and selling launchpad — would symbolize some of the vital strategic pivots in cryptocurrency historical past. It underscores the broader challenges dealing with digital world platforms that after commanded premium valuations however have struggled to take care of person engagement and income streams.
The event raises questions on whether or not this marks a broader backside for the metaverse sector that after attracted billions in funding.
Sandbox layoffs pivot: 250 workers cuts as memecoin launchpad transformation begins
This strategic shift displays The Sandbox’s ongoing struggles with person retention and engagement in a metaverse surroundings that has struggled to take care of relevance because the post-pandemic decline in digital world curiosity.
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In November 2021, throughout the peak of the NFT and metaverse increase, The Sandbox raised $93 million in a Collection B funding spherical led by SoftBank’s Imaginative and prescient 2 fund. Previous to that, The Sandbox accomplished a 2020 preliminary coin providing to launch its native SAND (SAND) token, which has plummeted in worth by over 95% from its all-time excessive.
Nonetheless, business analysts have lengthy identified that The Sandbox’s enterprise mannequin was basically flawed, citing the shortage of accessible digital actuality {hardware} for mainstream metaverse adoption. The sensible utility of digital areas in a roundabout way related to partaking gameplay experiences now seems questionable in hindsight.
For an organization as soon as valued at $1 billion, The Sandbox’s strategic pivot represents a shift towards a leaner, extra worthwhile enterprise mannequin impressed by Pump.enjoyable (PUMP), somewhat than persevering with as a conventional gaming or metaverse platform.
In line with current statistics, Pump.enjoyable, the Solana-based memecoin launchpad, has surpassed $800 million in complete income so far, producing over $1 million day by day in platform charges as of August 2025.
Throughout the sector, memecoin market capitalization fluctuated, rebounding to just about $75 billion on August 11 earlier than settling at round $66 billion later within the month.
Different metaverse initiatives equivalent to Decentraland (MANA) have additionally confronted vital challenges just lately. The platform, as soon as valued at over $6 billion, has seen MANA token costs decline by over 95% from their all-time excessive reached in November 2021.
Memecoin launchpad pattern: metaverse sector faces widespread challenges as initiatives battle
Nonetheless, a key difficulty within the wake of Animoca Manufacturers’ takeover of the corporate stays The Sandbox’s crypto treasury, which stories an estimated to be between $100-300 million.
The peak of the NFT and metaverse increase of late 2021 looks like a distant reminiscence for a lot of, reflecting a dramatic decline and broader cooling after large hypothesis poured in from main manufacturers and celebrities.
The last word destiny of this strategic transformation might be decided by The Sandbox DAO, which should vote on enchancment proposals that dictate how the platform’s substantial treasury sources might be allotted shifting ahead.
Nonetheless, what stays sure is that below Animoca Manufacturers’ new management construction, The Sandbox’s transformation from a once-dominant metaverse platform right into a streamlined memecoin launchpad represents a elementary shift for an organization as soon as touted as the brand new Fb.
