The Sandbox Confirms Restructuring

Reports of significant staff layoffs and executive transitions at The Sandbox have generated discussion across the web3 and gaming communities. On August 27, French crypto outlet The Big Whale reported that the metaverse platform had laid off over half of its staff and removed co-founders Arthur Madrid and Sebastien Borget from their executive roles.

The report also suggested that the team was preparing to launch a memecoin platform, leading to questions about the future direction of The Sandbox. In response, the platform issued an official statement confirming internal restructuring while clarifying that claims about a shift in strategy were misleading.

The Sandbox Confirms Restructuring

The Sandbox Confirms Restructuring

According to The Big Whale and subsequent reporting by journalist Grégory Raymond, Madrid and Borget, who previously served as CEO and COO, were replaced by Robby Yung, CEO of Investments at Animoca Brands. While media reports framed the changes as a removal of the co-founders, The Sandbox stated that both leaders remain involved in the project. Madrid now serves as Chairman, and Borget acts as Global Ambassador.

The platform emphasized that both continue to play active roles in the ecosystem, with Borget indicating that details of key initiatives would be shared later in the year. Robby Yung, a long-time executive at Animoca Brands, has been associated with The Sandbox since Animoca acquired the platform in 2018. The company described Yung as instrumental in supporting the growth of both Animoca and The Sandbox, underscoring continuity in leadership despite the executive changes.

The Sandbox Confirms Restructuring

Staff Reductions and Consolidation

Reports have indicated that over 50 percent of the platform’s approximately 250 employees were affected by layoffs, with teams in Argentina, Uruguay, South Korea, Thailand, and Turkey reportedly impacted. Media coverage also suggested that the company might close its Lyon office. The Sandbox confirmed that staff reductions occurred but did not provide specific figures. The platform explained that the decisions were part of efforts to optimize operations through the adoption of AI in game development and support processes, with the goal of maintaining a more agile and efficient team.

The company also clarified reports of multiple office closures. According to The Sandbox, five locations were closed to consolidate resources into more centralized offices, and several of these sites had been staffed by only one to three contractors working remotely or in co-working spaces. The platform continues to maintain a formal presence in nine locations worldwide.

The Sandbox Confirms Restructuring

Token Performance and Other Rumors

Concerns about the platform’s stability have also been linked to the performance of the SAND token. CoinGecko data shows that the token has declined 97 percent from its all-time high of $8.40 in 2021, currently valued at $0.28, with a market capitalization of approximately $687 million.

Reports noted that The Sandbox had invested roughly $300 million over eight years in platform development but now records only a few hundred daily users, primarily automated accounts. The platform’s crypto treasury, estimated between $100 million and $300 million, has been highlighted as a critical factor in evaluating the impact of restructuring on future operations.

Reports have circulated about a potential memecoin launchpad using Coinbase’s Base layer-2 network. However, Borget declined to comment on market speculation, and The Sandbox’s official statement did not reference any such project. The platform reiterated that its core mission remains unchanged, focusing on empowering creators and maintaining its key assets, including SAND tokens, LANDs, NFTs, and other digital items.

The Sandbox Confirms Restructuring

Other Platform Updates and News

The leadership changes and layoffs prompted responses from creators and influencers. Some members of the community criticized the platform for prioritizing celebrity partnerships and marketing campaigns over support for individual creators and community building. Concerns were also raised about the complexity of The Sandbox’s Game Maker tool, lack of mobile support, and the potential memecoin initiative, which some viewed as diverging from the platform’s core objectives.

Despite ongoing speculation, The Sandbox has continued to release platform updates. The recent launch of Game Client 0.12 introduced features such as Multiplayer Lobbies, Quick Play matchmaking, adaptive chat, new NPC behaviors, and improved user interface tools. The update also added movement options like Dash and Glide, autosaving of in-game progress, advanced water rendering, and expanded 3D gallery support for NFTs and Experiences. NPCs can now serve as companions, collectors, or healers, enhancing story-driven gameplay.

Earlier this year, Alpha Season 5 concluded after a six-week run, offering over $1 million in SAND token and NFT rewards. The season included more than 40 Experiences, a Jurassic World-themed island, over 65 collectible NFTs, and a combination of branded and community-created games.

The Sandbox Confirms Restructuring

Final Thoughts

The Sandbox has emphasized its commitment to long-term growth and maintaining its core mission of empowering creators. In official statements, the platform confirmed that restructuring and leadership adjustments are intended to support smarter, more sustainable growth rather than signal a reduction in operations. Both The Sandbox and Animoca Brands have reaffirmed their focus on the development of the platform and the expansion of its token economy.