The Sandbox Abandons Metaverse Dream: 50% Staff Cuts and Shift to Meme Coin Action on Base

The Sandbox, once a flagship of the action metaverse sector, is undergoing a dramatic transformation. According to recent reports, the Animoca Brands-backed platform is slashing its global headcount by half, with layoffs affecting offices across Argentina, Uruguay, South Korea, Thailand, Turkey, and France.

Strategic Pivot Away From Virtual Worlds

The restructuring marks a decisive departure from The Sandbox’s original vision. What began as an ambitious platform for users to purchase digital real estate, construct assets, host experiences, and participate in NFT trading has now pivoted toward web3 applications. The company plans to launch a meme coin incubator on Base, signaling a fundamental shift in business focus away from the action metaverse concept that defined its earlier positioning.

Leadership Transition Signals New Direction

Co-founders Arthur Madrid and Sébastien Borget are stepping away from daily management, with Robby Yung, CEO of Animoca Brands, assuming control of the organization. This leadership change underscores the strategic reorientation and suggests a commitment to exploring adjacent crypto markets with higher growth potential.

Market Reality Reflects Metaverse Fatigue

The decline in The Sandbox’s token reflects broader headwinds in the metaverse sector. SAND currently trades at $0.12, down approximately 77.92% over the past year and starkly distant from its November 2021 peak of $8.40. The token’s trajectory mirrors the broader pullback from metaverse platforms following the speculative boom of 2021–2022, when adoption failed to materialize as initially projected.

The move to meme coin infrastructure on Base represents a pragmatic recalibration—prioritizing participation in proven growth narratives within the web3 ecosystem over continued investment in an unproven virtual world thesis.