The Sandbox’s ongoing development of the metaverse has gained a significant boost with strategic funding of $20 million. This financing, obtained through convertible promissory notes, marks a new chapter for the company.
Promissory notes are a type of debt that can be converted into equity in the future, providing financial flexibility to developers. Kingsway Capital and Animoca Brands led the round, with additional support from LG Tech Ventures and True Global Ventures. With this investment, The Sandbox’s valuation reaches the US$1 billion mark.
The Sandbox, a blockchain-based gaming platform and metaverse, seeks to provide a virtual environment where users can create, own and monetize their gaming experiences. The company is preparing to launch a new multiplayer gaming experience and decentralized metaverse for mobile devices by 2025.
Animoca Brands co-founder and executive chairman Yat Siu expressed his excitement about the future of user-generated games. He highlighted the importance of digital property in the context of games like Minecraft and Roblox, which do not provide digital property rights to users.
“We are deeply honored by the continued commitment to The Sandbox’s vision and are incredibly excited about the future of user-generated content composable games,” said Yat Siu.
The Sandbox among the unicorns
The $1 billion valuation places The Sandbox among the “unicorns” of the crypto universe, a select group of companies valued at billions of dollars. This new financing not only solidifies The Sandbox’s position in the market, but also signals investors’ continued confidence in the company’s vision and potential.
Animoca Brands, the parent company of The Sandbox, is one of the main investors in the metaverse and continues to play a crucial role in the expansion of the platform.
Additionally, The Sandbox platform is known for its high-profile partnerships with celebrities and brands, including Snoop Dogg, Gucci and Paris Hilton. These collaborations increased the platform’s visibility and generated high demand for virtual land, sold as NFTs. In 2021, virtual land near Snoop Dogg’s metaverse property sold for $450,000, highlighting the perceived value of these digital assets.
However, the market for virtual land and NFTs has seen significant fluctuation since the peak of the metaverse hype in early 2022. The price of land in The Sandbox, for example, has dropped dramatically from 3.9 ETH (approximately $11,700) to 0.08 ETH (around $300) currently. Despite this volatility, the platform’s native SAND token remains among the 100 most valuable cryptocurrencies in the world, according to data from CoinGecko.
New features for users
In addition to funding, The Sandbox has also launched a decentralized autonomous organization (DAO) to allow token holders to participate in the platform’s governance. Users who own LAND land or the SAND token can propose and vote on decisions that directly impact game development, new features, events and rewards initiatives.
The Sandbox’s mission is to create an open and fair metaverse by offering tools and technologies that enable all types of creators to thrive. Arthur Madrid, co-founder and CEO of the company, reaffirmed this commitment, highlighting the importance of providing new opportunities for creators in the metaverse.
This US$20 million financing represents more than a simple capital contribution; it is a validation of The Sandbox’s long-term strategy and vision. The company is well positioned to continue innovating and expanding its ecosystem, offering a platform where creativity and digital ownership can flourish. With continued support from strategic investors and an engaged community, The Sandbox is poised to shape the future of gaming and the metaverse.
Source: https://www.criptofacil.com/desenvolvedores-do-the-sandbox-levanta-us-20-milhoes-com-notas-promissorias/
