Quick Take
- The Sandbox lays off over 50% of staff, closes global offices as Animoca assumes direct control
- Founders Arthur Madrid and Sébastien Borget removed from operational roles, Robby Yung appointed CEO
- Pivot toward Web3 apps and Base-based launchpad follows steep SAND token decline
Metaverse platform The Sandbox is undergoing a major restructuring, with more than half its global workforce laid off, multiple offices shuttered, and its founding leadership removed from daily operations. The shift marks a new chapter under the direct control of Animoca Brands, which appears to be pivoting the project away from its original metaverse ambitions.
French crypto outlet The Big Whale first reported that co-founders Arthur Madrid and Sébastien Borget have stepped down from their executive roles. Animoca executive Robby Yung is now leading The Sandbox as CEO, while Madrid will serve as non-executive chairman. Borget, in a statement to The Big Whale, said he will act as a global ambassador for the brand.
Offices Close and Teams Disband
At the start of 2025, The Sandbox employed around 250 people. Reports now indicate that more than 50% of that headcount has been let go. Teams across Argentina, Uruguay, South Korea, Thailand and Turkey have been affected. The company’s office in Lyon, France is also expected to close, with additional layoffs in Paris.
The company framed the downsizing internally as a reset based on improved tooling and development workflows that allow it to run on a leaner team. The cuts follow a long period of declining daily active users and limited traction beyond early metaverse hype cycles.
Web3 Apps and Base Launchpad on the Horizon
Alongside the layoffs, The Sandbox appears to be refocusing toward a broader Web3 strategy. According to The Big Whale, the team is developing a memecoin launchpad on Coinbase’s Base network. The platform’s original focus on a persistent virtual world with digital land sales has waned as the metaverse narrative continues to fade across the industry.
An unnamed investor cited in the report said the “context has evolved and the project has to evolve,” referencing ongoing market shifts and the relative stagnation in user activity.
SAND Token Declines and Treasury Questions
Since its all-time high in 2021, the SAND token has dropped nearly 90%, erasing billions in market value. At its peak, The Sandbox reached a $6.2 billion market cap. Today, it sits closer to $700 million. The platform raised around $350 million in land sales during that boom, and its crypto treasury is believed to hold between $100 million and $300 million in assets.
According to CoinDesk, there is uncertainty over how this treasury will be managed. A governance vote is possible, though activity has been limited. Only 291 wallets participated in three proposals submitted by SAND holders this August.
