The Sandbox Is A Play To Earn Gaming Platform.

What Is A Sandbox Coin?

Sandbox is a play-to-earn game that combines blockchain technology and nonfungible tokens (NFTs) in a three-dimensional (3D) metaverse. It focuses on user-generated content which helps further develop the platform. 

The game was initially known as two separate mobile hits: The Sandbox, which was launched in 2011, and The Sandbox Evolution, which was launched in 2016. Together, the two games generated around 40 million downloads across the Android and iOS platforms. 

In 2018, the games’ developer, Pixowl, was acquired by Hong Kong-based game software company Animoca Brands which integrated the popular games into the blockchain ecosystem. 

Sandbox is hosted on the Ethereum network and is powered by SAND, an ERC-20-based token. 

Inspired by major game-creation systems such as Minecraft and Roblox, Sandbox allows players not just to create their own worlds and games, but also to have true ownership of their creations as NFTs. In exchange for participating and playing, players earn SAND tokens. 

According to the metaverse’s whitepaper, the current game market limits creator rights and ownership, an issue which Sandbox aims to overcome “while accelerating blockchain adoption to grow the blockchain gaming market”.

The game itself is split into three parts:

VoxEdit, where players can create and animate 3D objects such as people, animals, tools and foliage. These are then exported into The Sandbox marketplace, where they become game ASSETS and are sold as NFTs. 

• The Sandbox marketplace where users can upload, publish and sell their ASSETS as ERC-721 and ERC-1155 tokens. The Marketplace launched on 30 March 2021. 

GAMEMAKER, where players who own ASSETS can use them to play the game itself. Players can place their ASSETS within a piece of LAND (an ERC-721 token) that they own within the Sandbox metaverse. This LAND can be decorated with a number of ASSETS which can be given predefined behaviours through visual scripting nodes. Thus, players are able to turn their LAND into a potential full game experience. Several LANDS can be combined by players to form an ESTATE. 

The SAND token fuels the platform and can be earned by selling ASSETS, by owning LAND which can be rented or populated with content to increase its value, and/or by building and monetising games through the GAME MAKER function on the LANDS that are owned by players. 

The token also:

• Gives players access to the platform. Players use SAND tokens to play games, make in-game purchases and customise their avatars. SAND is also charged to upload ASSETS on the marketplace and purchase Gems that define an ASSET’s rarity and scarcity. 

• SAND holders are granted governance and can exercise voting rights on key features within the project’s roadmap

• Players can stake their SAND tokens in order to earn more. This is also the only way that players can earn the Gems and Catalysts that are needed for ASSET creation. 

Players get to keep 95% of their SAND revenue. 

The total supply of SAND coins stands at three billion, with 1.12 billion in circulation. The token reached over $3.15bn in market capitalisation and is ranked the 37th largest cryptocurrency by CoinMarketCap as of 10 March 2022. 

Background And Team

The Sandbox’s official website gives no information about the project developers, founders or team. Instead, it is modestly reported to be a “community driven” platform. From the modest information provided as part of IEO in 2020, it was possible to find out that the founders of Sandbox are:

  • Arthur Madrid – currently holds the post of the general director of the project;
  • Sebastien Borget – CEO. 

Overall, the team employs more than 40 people, a complete list of which will take up a lot of space on this page:

As for the platform’s partners, among the most famous are Atari, Crypto Kitties and Shaun the Sheep:

The general public first learned about the project after the announcement of the IEO launch via Binance Launcpad in August 2020. Earlier, the founders also received private investment. The platform’s functionality was launched after IEO in December 2020, although not all functions have been implemented so far.

Unfortunately, we couldn’t find a single cute interview in which the founders told inspiring stories that made them launch Sandbox. Obviously, the project’s key ideas are:

  • Providing a P2P gaming experience;
  • Preserving the players’ copyright to objects created by them;
  • Building a blockchain-based gaming universe.

Blockchain games are not new to today’s audience, but Sandbox is a cross between a game and a playground where players can create, set rules and share content. 

How Does The Sandbox Work?

The Sandbox uses the Ethereum blockchain to track ownership of NFT assets and LAND on its software. Users can further interact with the ecosystem with Ethereum wallets that keep their tokens. The blockchain-based game also involves several tools that developers can use to create the assets they use. These tools are:

  • Game Maker. A simple, no-coding-required tool that lets users test and build their 3D games within The Sandbox metaverse. It allows users to curate quests, edit terrain and create buildings and characters that they can then share with the Sandbox community. 
  • VoxEdit. Voxels are 3D pixels that look like lego blocks. VoxEdit is a user-friendly software that players and artists can use to animate, create and rig their voxel-based NFTs. It allows users to design animals and plants and create avatar-oriented equipment such as weapons or clothing. 
Users can upload their creations into The Sandbox marketplace, where first they are registered as ERC1155 tokens (ASSETS) on the Ethereum blockchain. These ASSETS can then be bought and sold using SAND.

Brief History Of Sand

Before building the most recent game in their franchise, the Sandbox team developed 2 incredibly popular mobile games in 2011 and 2016 with 40 million downloads together. Recently, the company and its partners decided to focus on monetizing user-generated content for creators. The platform wanted to allow users to fully own the content created in the game. To meet this goal, Sandbox developers  incorporated their already popular IP into the Ethereum blockchain.

Sand was listed in Q3 2020 via an initial exchange offering (IEO) on Binance Exchange. It opened trading on Binance at a price of $0.0083, and its price stayed mostly flat before it surged in price in February 2021. In early 2021, SAND tokens soared to over $0.90 per coin, appreciating multiples over its value just months prior. However, SAND fell over 50% in the summer months of 2021. After Facebook announced its rebrand to Meta, The Sandbox surged past $8 before retracing back down at the end of November 2021. The token currently is in the top 50 coins by market cap, and it’s per token price is over $6.

How To Get Free Sand Tokens?

Cryptocurrency trading platforms often offer rewards to new users for simply creating an account. Now until January 31st, the crypto trading platform Uphold is running an exclusive promotion to get free Sand tokens if you’re a new user. The rules are simple: sign up for an account, buy 10 Sand tokens, and you’ll be credited with 10 more Sand tokens free of charge. At the current price of SAND, that’s a free $50!

How To Buy The Sandbox?

1. Open An Online Account.

Sand is available on a few major trading platforms including Gemini, Crypto.com and Binance. Gemini and Crypto.com both have great apps on iOS and Android. To trade Sand, you need to sign up for an account on one of these exchanges if you don’t already have one. You also need to verify your identity if you are in the U.S. Verification requires your address, Social Security number and a driver’s license. Once you have verified your identity, you can fund your account with fiat currency or another crypto to start buying Sand.

2. Buy Or Download A Crypto Wallet (Optional).

If you aren’t planning on trading your new tokens soon, it’s usually a good idea to move them off the exchange. While the chances of an effective hack on a large exchange are low, the risk is eliminated when you fully control your tokens. Both Gemini and Crypto.com store users’ private keys in secure, cold-storage facilities to keep their assets safe. The most secure option is a hardware wallet, but software wallets can be an effective solution and most are free.

3. Make Your Purchase.

First, you need to fund your exchange account with fiat currency or supported cryptos. The easiest option to deposit USD is to link your bank account and initiate a transfer. Both Gemini and Crypto.com allow you to trade with your deposit immediately, although you won’t be able to move cryptocurrencies off the platform until your deposit fully clears in 4-5 days. Once you have deposited the funds you need, find Sand on the exchange and make your purchase.

SAND Price Driven By Partnership & Investor News 

The Sandbox token’s outlook started to look much more positive at the start of February 2021, following Sandbox’s partnership with cryptocurrency price-tracking website CoinMarketCap for the latter to release an NFT collection on the metaverse.

In the following months, the token’s price kept moving sideways before it reached $3.22 on 3 November 2021, after the metaverse announced on 2 November that it had gained $93m from Softbank Vision Fund 2 investors, which would help the platform scale up its growth strategy, operations and player acquisition. 

By then, Sandbox already had over 165 partners, including popular US rapper Snoop Dogg, and famous TV series The Walking Dead and the Smurfs. The project had also partnered up with Liberty City Ventures, Galaxy Interactive and Adidas Originals. 

On 25 November 2021, the token had reached its all-time high of $8.4022 – a 16,387.83% surge since its launch at $0.05096 on 15 August 2020. 

On 1 December 2021 Sandbox announced that players could purchase plots next to the one where Snoop Dogg was building his mansion, Snoopverse. This led the SAND token to grow by just 2.02% from $6.5781 on 1 December to $6.7114 the following day. 

Following an overall drop in bitcoin and ether prices at the start of December, SAND also fell by 28.8% to $4.7785 by mid-month, despite having secured partnerships with 10 exchanges, as well as a MAUER NFT collection memorialising the Berlin wall. 

On 21 December 2021, the metaverse’s partner, Canadian electronic music producer deadmau5, announced the launch of his NFT collection on the Sandbox marketplace which pushed the SAND token’s price up to $6.73 on 26 December, an increase of by 40.81% from its 14 December low.

Bank of America strategist Haim Israel said on 1 December that the metaverse will make cryptocurrencies even more popular than they already were, thus boosting price targets for many metaverse-based crypto tokens including SAND. On 18 January 2022, investment firm JP Morgan Chase agreed with BoA’s bullish predicament by publishing a report saying that the metaverse industry could possibly reach over $1t in yearly revenues. The firm’s report mentioned Sandbox as one of the “main metaverse platforms”. 

However, the token’s value line on the chart started to decline once again, amid a general dip in the crypto market at the start of 2022 due to the possibility of tightening monetary policy and geopolitical tensions. 

What’s Next For The Metaverse?

One silver lining for the SAND token price was Snoop Dogg’s announcement on 27 January 2022 that he would be launching a series of Snoop Dogg metaverse avatars on the platform. The news pushed the token’s price by 61.28% from $2.99 on 22 January to $4.81 on 8 February 2022. The NFTs were minted on 22 February and have the potential to hike the token’s price once again. 

In more recent SAND coin news, partnerships with Gucci and Ubisoft  were unable to offset the overall bearish forecast in the markets, with the token reaching $3.11 on 22 February – a 35.4% drop since 8 February. 

The platform also partnered with Warner Music Group which will create a music-themed world in the metaverse as the platform plans to launch its first virtual concerts in the third quarter of 2022. 

A mobile version of the metaverse is anticipated for some time in the fourth quarter of 2022. 

BigOne Exchange chair Anndy Lian told Capita.com that Sandbox heavily relies on Ethereum’s performance, making the token quite volatile. 

“Personally, We do like the developments of the project. But we do want to point out some angles for improvement. Firstly, the project relies heavily on Ethereum’s performance. We do think that, given the right situation, they should look at building on another blockchain or even their own chain.

“Secondly, their game needs to be attractive enough to draw in more users while retaining the old ones. We hope to see more game enhancement and token utility that comes along with it.”

Pros And Cons Of The Project

Sandbox is a rather specific project that propels blockchain in a new direction – gaming, so it is quite difficult to assess its strengths and weaknesses. However, we will try to identify the main pros and cons based on the economic structure, technical characteristics and roadmap. The key benefits of Sandbox are as follows:

Pros Of Sand

  • Original idea – it does not even consist in using blockchain to decentralize the gaming industry, rather in building a whole gaming universe based on Ethereum. Functioning tokens are not so much assets as rights to receive and provide gaming experience. 
  • NFTs – non-fungible tokens are a new trend in the industry and Sandbox has found a worthy use for them. With them, each plot and game object in the virtual world turns into a unique and full-fledged property that can generate income for its holders. 
  • Products offered – Game Maker and VoxEdit, of course, are not suitable for creating AAA projects, but these tools can be a good start for novice mod-makers or game designers, who will not only get the opportunity to improve their skills, but also immediately monetize their work. 

Cons Of Sand

  • Economic restrictions – although the SAND token is listed on some exchanges, it is not a full-fledged cryptocurrency or even a digital asset. Essentially, it only links together the Sandbox ecosystem and allows playing games. That is, it only has a slightly greater value than the in-game token of any MMO. 
  • Narrow target audience – this disadvantage follows from the previous one. Since the rights and opportunities provided to SAND holders narrow down to the creation and use of game content, the token is only of interest to gamers and game developers. Naturally, traders can speculate on a change in rate, but this requires a broader trading ecosystem.
  • Decentralization – since the developers used pre-mining, the question of SAND transaction processing on the platform remains open. There is no information so far on what kind of authentication algorithm will be used and how the platform will incentivize the processing nodes. It seems the recording of transfers to the blockchain is provided centrally. 

Only time will tell how popular Sandbox will become among gamers, novice developers and game designers. The project is still very young (it has been working for only 3 months already) and its functionality has not yet been fully disclosed. The full implementation of the roadmap is scheduled for 2023, and only closer to this time the platform will reveal its potential, strengths and weaknesses. 

Analyst Views On SAND

Bitbank crypto market analyst Yuya Hasegawa told Capital.com that upbeat comments on the Sandbox metaverse from financial institutions like Bank of America and JP Morgan, as well as sales of collaborative items with celebrities and popular brands, are attracting investors to the platform. 

Hasegawa was interviewed before Russia invaded Ukraine on 24 February 2022. 

“However, although SAND and some other metaverse-related tokens have outperformed bitcoin in the last quarter, the current market environment – not limiting to the crypto market – is heavily affected by the situation at the Russia-Ukraine border and investors are being quite defensive,” she noted. 

“So, even though SAND has a lot of growth potential in the long run, as the industry itself is still in a sort of ‘experimental’ or ‘developmental’ phase, the financial market as a whole has to wait and see how the situation at the Russia-Ukraine border rolls out.”

Invezz data analyst Dan Ashmore added that the token managed to piggyback off the wider boom in the metaverse caused by Facebook rebranding to Meta in October. 

“Further fuel was provided via high-profile partnerships, including Gucci, Warner Music Group and Snoop Dogg (offering shopping experiences, virtual concerts and playable avatars respectively). Particularly exciting going forward is the focus on user-generated content.

“Objects and interactive games can be created and sold on the marketplace. With the internet increasingly focused on content creation (YouTube, TikTok etc), ATH above $8 could be achievable in the next year or two, although that will depend on the wider crypto market,” he concluded. 

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