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Metaverse platform The Sandbox has addressed widespread rumors following a report from French outlet The Big Whale that claimed the company had cut over half its staff, pushed out its co-founders, and was preparing to pivot into a memecoin launchpad. In an official statement, The Sandbox confirmed layoffs and leadership changes but firmly rejected claims that misrepresent its direction.
Good to Know
Reports suggested Madrid and Borget were sidelined, but The Sandbox clarified both continue to play active roles. Madrid now serves as Chairman, while Borget is Global Ambassador, with key initiatives from both expected later this year.
The company confirmed Robby Yung, CEO of Investments at Animoca Brands, has been appointed CEO. Yung has worked closely with The Sandbox team since Animoca’s acquisition in 2018 and was described as “instrumental” in supporting growth.
The Big Whale reported more than 50% of the platform’s 250 staff were laid off across Argentina, Uruguay, South Korea, Thailand, and Turkey. The Sandbox acknowledged workforce reductions but did not confirm numbers, citing a shift toward AI in game development and support operations as the driver.
On office closures, the company disputed claims of five to six major shutdowns, saying that some of the locations described were actually small remote teams or coworking arrangements with one to three contractors. The Sandbox stated it still maintains formal offices in nine global locations.
The news comes as The Sandbox’s native SAND token continues to struggle. Priced at $0.28, it has fallen 97% from its 2021 peak of $8.40, with market cap shrinking from $6.8 billion to about $687 million.
Observers have also raised questions about treasury spending, with reports suggesting the company has burned through $300 million on development over eight years while attracting only “a few hundred daily users, mostly bots.”
Some longtime community members expressed frustration. Web3 creator Cagyjan described the restructuring as a “shutdown,” criticizing heavy spending on celebrity partnerships with Snoop Dogg and Paris Hilton, while overlooking creators and user acquisition. Others questioned the rumored memecoin launchpad, calling it a strange pivot.
The Sandbox declined to comment on speculation about a memecoin project, reiterating that it is not moving away from its core mission.
Despite the controversies, The Sandbox has continued to roll out updates. Game Client 0.12 recently launched, introducing multiplayer lobbies, matchmaking, adaptive chat, new NPC behaviors, improved UI, and 3D NFT galleries. The update also added Dash and Glide movement, autosaving, and advanced water rendering, while expanding support for story-driven gameplay.
Earlier this year, Alpha Season 5 concluded with over $1 million in rewards distributed in SAND tokens and NFTs. The six-week season featured more than 40 Experiences, a Jurassic World-themed island, 65 collectible NFTs, and a mix of branded and community-created games.
In its closing remarks, The Sandbox emphasized that its long-term vision remains intact. “We can definitely confirm that The Sandbox is not pivoting away from its core mission,” the company said. Borget added that The Sandbox and Animoca Brands are “committed to empowering creators and the growth of their token economy.”