The growth history of The Sandbox: How did it go from being sold for $5 million to a value of $3.6 billion today?

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2022-03-25 03:00

This article is about 9105 words, reading the full article takes about 14 minutes

With its unique economic governance model, The Sandbox will have the potential of a metaverse game giant in the future.

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With its unique economic governance model, The Sandbox will have the potential of a metaverse game giant in the future.

Original Source: MetaverseHub

It can be seen that in the past two years when the concept of metaverse has become popular, technology giants, leading Internet companies, and capital have all actively entered the game, and are also exploring a track that suits them. However, the fact that cannot be ignored is that metaverse The universe needs users to create together

However, some current mainstream sandbox games limit the rights and ownership of creators. In order to solve the centralization problem of user-generated content, The Sandbox has rich experience to provide creators with new tools to build metaverses.Therefore, TheSandbox does not want to be just a fun game, its goal is to gain recognition from the process of empowering creators, so what exactly is The Sandbox ecosystem? What kind of story does it write in the metaverse industry? And why can it become a unicorn-level company after being "sold" for $5 million?

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What is The Sandbox?

TheSandbox is a sandbox game built on Ethereum, which is similar to Minecraft produced by Microsoft Xbox Game Studios. The characteristics of this type of sandbox game are

Players can freely explore and create in the game, use the props provided in the game to build their own things, and finally experience the fun of the game by achieving certain achievements, and the game itself has no main storyline.

The difference is that in ordinary games, we can obtain or purchase corresponding equipment and props, but these game items do not belong to us personally, but to the game manufacturer.

In the world of TheSandbox, all this will be different. The characters, props and equipment in the game can be "NFTized" through blockchain technology, and everything created by players will become their personal "digital assets".

VoxEdit (creation editor), GameMarker (game creation), and Marketplace (trading market) are important components of The Sandbox ecosystem.VoxEdit is a very powerful free 3D voxel modeling and NFT creation package. It is easy to use. Once the models created by players pass the official approval, they can be traded on the official market.

The total number of LAND in The Sandbox is 166,464 blocks, which will never increase or decrease, of which 123,840 blocks can be sold, 25,920 blocks are allocated as rewards to partners, creators, and players, and the other 16,704 blocks are used as venues for events and games.

SAND is a functional token based on the Ethereum ERC-20 protocol. It is also the main medium of exchange in The Sandbox ecosystem. It can be used for transactions, governance, and asset creation. "NFTized" characters, props, etc. can become tradable asset.

When creators have their own assets, they can trade with ordinary users who want to buy LAND, assets, etc. in the Marketplace.

Since The Sandbox adopts the Play To Earn (earn while playing) model, the goal of generating income can be achieved by trading or obtaining in-game tokens. Therefore, The Sandbox is also regarded as a sustainable game and content creation ecosystem, and the independent creation of players in the game can be transformed into a certain value.

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History of The Sandbox?

Following the financing in October 2021, Animoca Brands, the parent company of The Sandbox, was valued at approximately US$2.2 billion at the time. After completing the US$358 million financing in January this year, the company’s valuation once soared to US$5 billion. The financing was led by Liberty City Ventures, with participation from Soros Fund Management.

It can be seen that The Sandbox, as a decentralized metaverse game, is attracting the attention of the capital market, so how did The Sandbox achieve today’s achievements step by step?

In fact, TheSandbox is not a new project. In 2012, TheSandbox launched mobile versions of the game on Android and iOS. The app has amassed 40 million downloads and even reached nearly 2.6 million monthly active users at its peak, while also being named "Game of the Year" by Apple in 2012.

In 2015, through the game platform Steam, The Sandbox provided PC version downloads. Users created 70 million unique worlds and environments in The Sandbox to interact with other players.

But this kind of sandbox game form where users generate content is not enough to make The Sandbox stand out from competitors, especially in the face of such powerful competitors as "Minecraft", it naturally lost the camp.The turning point of TheSandbox's second life came in 2018, after it was acquired by Animoca Brands for about US$5 million (the actual price was US$4.875 million).

At this time, TheSandbox is developing its blockchain version, and Animoca Brands has a strong interest in the blockchain field. The two hit it off and completed the sharing of resources.

The CEO and founder of The Sandbox game development team Pixowl said, "We think blockchain is a way for our players to get real ownership, and they are creating more content," so for The Sandbox, this is a great opportunity .

The fact is indeed the case, TheSandbox's concept is very compatible with blockchain technology. Compared with other blockchain games,

TheSandbox solves many problems of open sandbox games through blockchain technology, such as the centralized control of some mainstream games on the transactions of virtual products created by players, which limits the value that players should have obtained in the free market.

Currently TheSandbox refuses to disclose its valuation, but the market value of Sandbox coin, the token supported by The Sandbox, exceeds $3.6 billion (sourced from CoinMarketCap).

In addition, according to official data, The Sandbox has raised more than US$95 million in 4 rounds of financing. The following is the detailed information of The Sandbox financing.

Generally speaking, The Sandbox has been welcomed and supported by many players, whether it is a traditional sandbox game or a decentralized metaverse game. This is also due to the strong development and operation capabilities of the team behind it. The reality platform still needs more comprehensive systems to protect users' rights, and the blockchain version of The Sandbox is also continuing to actively explore, and has gradually gained the favor of many brands.

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Why is The Sandbox favored by brands?

Whether it is a ten-year development history or its unique ease of use and fun as a sandbox game, The Sandbox, one of the "Four Little Dragons of Virtual Land", has been favored by many brands.Currently, The Sandbox has established partnerships with more than 60 companies, including HSBC, Adidas Originals, Square Enix, ATARI, The Smurfs, CareBears and many other well-known IPs.But why did The Sandbox attract the favor of the brand side? Let us briefly review the strategic planning of The Sandbox team and the strong alliances between The Sandbox and its partners in the past.

As early as August 2018, Sebastien Borget, the co-founder and COO of The Sandbox, announced at the ChinaJoy exhibition that the decentralized sandbox game "The Sandbox" would be launched, based on the launch of the mobile game "The Sandbox Evolution". Evolved version.

Sebastien Borget stated at the meeting that The Sandbox team will release VoxEdit, a 3D editor that can combine user-generated content (UGC) with NFT, enabling

Anyone can make their own NFT, creating a new ecosystem of integrated creators and players who can play, create, collect, earn, govern and hold digital assets in games

, and this provides the basis for the brand to build its own The Sandbox scene.

In the next two years, The Sandbox successively launched LAND to introduce high-quality land and assets. The Game Makers Fund funded and authorized game projects and artists, and built a large community of more than 750,000 members, steadily and rhythmically advancing The Sandbox's ecological development. building.

Sebastien Borget firmly believes that players do not come for technology, but for fun. Creating interesting, visually appealing and well-mechaniced games is The Sandbox's ultimate vision, which coincides with the brand's IP attributes.

The most surprising thing is that in an interview in 2020, Sebastien Borget publicly stated for the first time that The Sandbox is a sandbox metaverse. The Sandbox team’s prediction of future technological development far exceeded most game companies at the time, and they were ahead of the times. at the forefront.The partners of The Sandbox can be said to cover all walks of life.

Well-known brands such as Atari, Care Bears, Japanese game development company Square Enix ("Final Fantasy" game publisher), Korean game developer SHIFT UP, Shaun the Sheep, Smurfs, and award-winning game studios are based on different brands Attributes and labels, creating its related theme metaverse in The Sandbox, faithfully restoring the scene required by the IP.

Blockchain partners such as Matic, MakerDao, Klaytn, OpenSea, Bitski, Dapp.com, Polygon, Ethernity, and DappRadar collaborate with TheSandbox's large community to promote decentralized exchanges and promote the development and iteration of Web3.0 .Decentralized game partners such as MyCryptoHeroes, ZEPETO, CryptoKitties, AxieInfinity and

The Sandbox is a strong alliance and is committed to providing an interactive parallel 3D space to enhance user experience.

The South China Morning Post, HSBC, New World Development Group, Adidas Originals, auditing giant PwC, Warner Music Group, gaming giant Ubisoft, Play Magnus Group (PMG), Hong Kong Ocean Park, luxury brand Gucci, Singapore digital assets Management company DWM, American high-tech sports men's brand ASRV, French top fashion magazine "L'OFFICIEL", Thailand Commercial Bank (SCB) and other traditional industries in the "mirror world" of The Sandbox metaverse, with brand-new interactive games and experience to demonstrate.

Jay Chou held a concert in The Sandbox, the American rap superstar Snoop Dogg created a mansion and the corresponding avatar in The Sandbox, and fans became neighbors with idols in The Sandbox, which made countless people excited.

at the same timeIntroducing mainstream game companies and IP into blockchain games and NFT, and establishing good trust and experience with these key brands is the direction of The Sandbox team's efforts. They practice and continue to make breakthroughs.

And the frequent favor of the brand side is not out of accident or whim. The Sandbox based on blockchain technology not only provides brand owners with ownership of digital assets, but also realizes a perfect replica of the physical world. The restoration of dreamy scenes that are difficult to achieve in the physical world.

at the same time

The Sandbox has a huge user base, which can well bring players and brands together to enhance user participation and brand influence.

In addition, when the era of the metaverse is approaching, The Sandbox, which has laid out the relevant tracks of the metaverse in advance and achieved a perfect fit, undoubtedly has a strategic advantage. At the moment when major brands are entering the metaverse and trying to seize the market, The Sandbox has become the first choice of major brands.first level titleThe difference between The Sandbox and Minecraft

In the field of games, sandbox is a type of game whose core gameplay is that players can change, influence or create the world in the game. The most representative game is "Minecraft".

"Minecraft" is a sandbox game developed by Mojang Studios in 2009.

This is a pixel world made up of blocks. There are animals, plants and minerals in this world. Everything has a way to destroy it and get some materials

, such as wood, meat, grain, ore, etc., and then through a series of structural formulas, the materials are reassembled into new things.

Therefore, players can modify and build this world arbitrarily in "My World", which is a real "My World" belonging to players, as if they are in an immersive world that is very similar to the rules of the real world.

In addition, "Minecraft" also has a creative mode. Players do not need to take risks, but only retain the construction function. These pixel materials can be used to build the world that players want, and are often used to reproduce some classic buildings. Or landscape."My World" has gradually become popular among players due to its highly free gameplay and novel creation mode. With the help of social platforms, countless players have begun to share their own buildings and ideas, which has also influenced "My World" more people.

Today, "Minecraft" has become a world-renowned game with more than 100 million monthly active users. It is an important milestone for sandbox games, and it also makes sandbox games a favorite type of game for players.

The built-in game of TheSandbox is very similar to "Minecraft". Players can first buy the land of The Sandbox and then create a pixelated game on this land. The Sandbox also provides creators with a set of tools that allow them to use their imaginations to create their own worlds.

However, unlike "My World",

The Sandbox is driven by blockchain technology, and blockchain technology can decentralize digital items into irreplaceable non-homogeneous tokens (NFT), which means that everything in The Sandbox is valuable asset.

Therefore, The Sandbox looks like a sandbox game, but it is quite different from Minecraft, and has become a more immersive digital world based on sandbox games. Here are a few broad directions to get a clearer understanding of how The Sandbox differs from Minecraft.

First, in The Sandbox, any player can own 100% of their own creations, and can make their own creations into NFTs and upload them to the market for others to buy, or they can make games they create for others to play, and get the benefits from it.

In contrast to "Minecraft", there are very few ways for players to make money. Most of them earn income through live broadcasting, recording, making related videos and other ways outside the game. Only a few top technical teams can rely on writing various modules. , MOD, research the latest technology and promote it, or form a professional construction team to make large-scale buildings to make money. Most people are still using love to generate electricity, and they have no martial arts, but they can't bring value to themselves.

Blockchain technology not only brings digital value to The Sandbox, but also allows content creators to usher in the spring of creative realization.Second, The Sandbox has a complete token economy system that can closely integrate players with the development of the entire The Sandbox. Players are no longer just playing games, but like aboriginals living in a digital world, they will be accompanied by The development of the city reaps dividends.
As more and more people join The Sandbox, whether it is the token representing The Sandbox or the value of the virtual land in it, all will rise.

This is like when we bought a house in Beijing, the appreciation of the house price represents the dividend of urban development, and we directly enjoy this dividend, but there is no such effect in "Minecraft". In Minecraft, the more players there are, the less economically they have any impact.Third, players of The Sandbox can dispose of their digital assets at will, and I am free to do anything with my personal assets. and"One of the characteristics of the centralized "Minecraft" is that the subject behind it has absolute right to speak on the product. Even if players spend money and energy on it, they do not have the right to dominate."This can be intuitively felt from the content of Minecraft's end user license agreement.

MINECRAFT END USER LICENSE AGREEMENT

One important rule is that you may not distribute any content we create unless we expressly agree to it.

Refers to:

orprovide anyone else with a copy of our games;

use any content we create for commercial purposes;

attempt to make money from any content we create;

allow others to access any content we create in an unfair or unreasonable manner;

This is understandable for the operator of "My World", but on the other hand, it also puts shackles on the greater possibility of the sandbox world. The autonomy endowed by blockchain technology to The Sandbox gives its users the wings of imagination, and the difference between the two can be judged.

The Sandbox is gradually being recognized by more and more celebrities and famous companies, and they have launched cooperation with them one after another. The future development potential is limitless.

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What exactly does The Sandbox carry?

As we described above, although The Sandbox is far inferior to Minecraft, which is sought after by mainstream gamers around the world, in terms of entertainment and user volume, we need to see what The Sandbox has brought us. What's new, and why it suddenly became popular after being quiet for many years, we will explore the meaning behind The Sandbox from three directions.

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The digital world has "ownership"

The digital world of the future will also be geographically divided, and The Sandbox aims to be a representative of land ownership in the digital worldTherefore, The Sandbox with blockchain characteristics can naturally value land ownership, rather than a piece of land on the network that can be copied and pasted at will. When the uniqueness and immutability of the blockchain are superimposed in The Sandbox , the chemical reaction brought about is like Marx wrote "Das Kapital" many years ago-the value of labor force has been affirmed.

As we described above comparing The Sandbox with Minecraft, because of the concept of tokens and NFT, we can really own a piece of land, a prop or a jpg in The Sandbox.

We believe that this kind of groundbreaking will bring innovation to the game and the digital world. Players are no longer participants in a game, but can also become builders or even leaders.

The changes brought about by The Sandbox's introduction of decentralization into the game world also gave birth to the metaverse, so it has the reputation of metaverse games and has been recognized by capital.

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Open up new marketing methods in the digital world

Perhaps people will wonder why more and more Fortune 500 companies have bought a piece of land in The Sandbox. Apart from some commercial hype behind this, the giants have also seen some new opportunities. After all, when NFT or digital collections When it becomes a kind of marketing method that young people are keen on, a big brand owner will inevitably need to seize the minds of users.Just imagine, if The Sandbox reaches a volume of tens of millions of monthly active users in the future, players who currently enter this field will bring considerable benefits due to the appreciation of land on the one hand, and on the other hand, will be attracted by the early entry into this new digital world. It has a good reputation, which includes both investment value and brand utility value, so the superposition of the two will inevitably win the attempts of some brand owners. After all, compared with Dongze’s hundreds of millions of brand marketing expenses, the layout of a piece of land in The Sandbox It's already a drop in the bucket.”

Of course, if you regard The Sandbox as a small metaverse space, brand owners have actually become the first batch of advertisers in the metaverse, just like the first company to launch Internet advertisements a few years ago, dare to eat crabs People will definitely get more people's attention.

As Lindsey, head of global technology and innovation of AB InBev, said, "The future of sports, media and entertainment is virtual. Almost 2.5 billion people have already participated in the virtual economy. This is the direction in which the world is evolving. There is no doubt that and As in the real world,

Brands need to find a foothold in a virtual parallel world.

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Becoming the True Beginning of the Metaverse

This beginning is like when Columbus crossed the Atlantic Ocean to discover the American continent in the 15th century. Although the New World is full of backward and ancient civilizations, the encounter between the humanities and the new world here is the root of development and its symbolic advantage. Of course, it is a coincidence that The Sandbox is also a virtual continent, and this gap needs to be filled by us latecomers.

Some people may say, "Metaverse can be built without a blockchain." We cannot absolutely deny such remarks. After all, the renaming of Facebook to Meta also caused huge waves. We can only say that the Metaverse is blessed by the blockchain. It can be regarded as the digital world in the true sense, otherwise it will be nothing more than a transformation from the two-dimensional Internet to the three-dimensional, a progress that treats the symptoms but not the root cause.

Therefore, the "P2E" (Play to Earn) pioneered by The Sandbox also allows players to have the feeling of truly "living" in the digital world, rather than simply playing games.

The development path of The Sandbox seems to be a good verification of the transformation from the Internet to the blockchain, and now they are standing on the broad road called the next-generation Internet. We should embrace the enthusiasm of Columbus and rebuild another on the New World. world.

first level titleWhat might the final form of The Sandbox be?

Now that we've talked about The Sandbox's current significance, where will The Sandbox go when we look to the future?We believe that The Sandbox will most likely become a real estate developer and advertising service provider in the metaverse in the future, and of course it may also have the potential to become a metaverse game giant.

The first is Metaverse real estate developers, this goal seems to be close. After all, more and more mainstream brands have purchased land in The Sandbox, and their transaction volume has also been rising. According to the Messari report, the land sales of The Sandbox in 2021 will exceed 350 million US dollars. Of course, compared with our traditional real estate, this data may not be as good as the land sales of a second-tier city, but it also indicates that there is still a lot of room for the future development of virtual land.

The second is about the ad server

In the future, if The Sandbox can make good use of its land plots and link part of the land development rights with sales, it may have a huge impact on the advertising services in the digital world. At the same time, with the expansion of its games, various traffic portals will also become a good place to sell advertisements. Of course, the final marketing option may still be in the hands of users. After all, the metaverse scene full of advertisements may not be pleasing.

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