TBW - Exclusive. Big Bang at The Sandbox: founders dismissed by Animoca
The Sandbox is turning a new chapter in its history. According to our information, co-founders Sébastien Borget and Arthur Madrid have been removed from operational leadership of the metaverse platform, which is owned by Hong Kong-based Animoca Brands.
Animoca appointed Robby Yung (CEO of Animoca) as CEO of The Sandbox internally two weeks ago. Sébastien Borget will transition to an 'ambassador' role, while Arthur Madrid becomes chairman (a non-executive position). "Sébastien and Arthur are stepping away from strategic operations and no longer hold executive powers," according to an internal source.
This information was confirmed to The Big Whale by Sébastien Borget himself, who will continue to publicly represent the project. "I remain the person who best embodies The Sandbox globally," he stated.
Behind this reorganisation, Animoca is above all seeking to regain control of a project deemed disappointing. "They've spent $300 million over the past eight years on a game that has only a few hundred real daily users, many of whom are bots in South America," explains a person close to the company.
Since the peak in 2021 and the craze surrounding the metaverse - Mark Zuckerberg renamed Facebook to "Meta" in 2021 - The Sandbox's token (the SAND) has been in freefall: it has lost more than 95% of its value. Its capitalisation has fallen from $8 billion to $700 million.
As a sign that the entire sector has been impacted, the other former metaverse star, Decentraland, is at a standstill for its part with a token that has lost 98% of its value ($500 million today). "No one is working on the project any more", explains an internal source.
Wave of redundancies and global restructuring
This takeover of The Sandbox is accompanied by a severe cut in headcount, which totalled 250 at the start of 2025.
More than 50% of teams are affected, particularly in Argentina, Uruguay, South Korea, Thailand and Turkey.
In France, management is still negotiating, but the Lyon offices are set to close and around ten positions in Paris are thought to be under threat.
Officially, the reason given is a "strategic turnaround" and above all technological advances that allow The Sandbox to continue developing with a smaller workforce.
Beyond this change, The Sandbox is said to still have crypto cash of "between $100 million and $300 million" (mainly in ETH and stablecoins).
"Animoca could be preparing its IPO in Hong Kong," says an executive who believes that the successful IPO of stablecoin issuer Circle in the spring has given the group ideas.
The Hong Kong publisher, which already has a strong presence in cash management and is partnering British bank Standard Chartered on a future stablecoin, reportedly sees The Sandbox's cash as a strategic asset to present to investors.
According to our sources, the metaverse is no longer a priority. A memecoins launchpad on Base will soon launch (inspired by the successful Pump.fun platform), signaling a pivot toward other Web3 applications. "The context has evolved and projects must adapt accordingly," explains one investor.
"We've always maintained our focus on gaming, but we must consider market trends," notes Sébastien Borget.
An end of the cycle for NFT gaming?
With this change in governance, it is also a symbol of the French crypto universe that is fading away. The Sandbox had embodied the golden age of NFT gaming and everything to do with metavers, attracting brands and institutions between 2019 and 2022.
The company was then described as a tech "unicorn".
But the gradual erosion of its user base, criticism of the quality of the game and the priority given to communication had ended up tarnishing its image. "Metaverse isn't dead, but it's going to have to reinvent itself", concludes a former partner.
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