Metaverse Startup The Sandbox Looks to Raise $400M at $4B Valuation: Report

 Metaverse Startup The Sandbox Looks to Raise $400M at $4B Valuation: Report


The Sandbox, a gaming metaverse developed on the Ethereum blockchain that has raised over $200 million in funding since 2017, is reportedly seeking up to $400 million more in a new round of funding that would value the company at around $4 billion.

The Sandbox, a gaming metaverse developed on the Ethereum blockchain that has raised over $200 million in funding since 2017, is reportedly seeking up to $400 million more in a new round of funding that would value the company at around $4 billion.

According to Bloomberg, citing sources familiar with the matter, The Sandbox could move ahead with its plan within months. It also plans an initial public offering (IPO) by 2025 as well as another token sale later this year.

The Sandbox is a virtual platform where creators can build worlds and games using voxels - 3D cubes - and non-fungible tokens (NFTs). Players can spend its SAND token to purchase land and content in the metaverse that spans several interconnected game worlds.

SAND is currently ranked 145th on CoinGecko based on market cap, with a price of about $0.29 per SAND coin according to CoinMarketCap data. It has a 24-hour volume of about $541 million and its circulating supply stands at 2 billion SAND coins out of a total supply of 10 billion coins.

The report says The Sandbox is currently scheduled to launch in December and that the new funds would be used for marketing and expansion.

The Sandbox is currently scheduled to launch in December and the new funds would be used for marketing and expansion

The Sandbox is a user-generated content platform that lets players create their own games. The platform allows users to purchase virtual land, collect voxel-based characters and mini-games as nonfungible tokens (NFTs) on a marketplace.

Since its inception in 2017, the company has raised over $200 million. In April, it launched a security token offering (STO) on the Polyient Games Marketplace, raising $2 million. At the same time, other gaming platforms such as Decentraland have also jumped on NFTs as another way to expand their assets.

The Sandbox will allow players to create games on their platform using virtual land, voxel-based characters, NFTs and other elements from blockchain technology.

The Sandbox offers players the opportunity to buy virtual plots of land that they can then build games on, using voxel-based characters, NFTs and other elements from blockchain technology. Voxels are a type of graphics technology where each image is created by combining cubes together.

Players can also earn rewards for creating successful games on The Sandbox platform, including SAND tokens. Users will be able to use those tokens for in-game purchases and cryptocurrency exchanges.

While revenues from NFT sales were up 200% year-over-year in 2020, the total dollar amount involved with these sales is tiny compared to the $159 billion spent on video games last year.

Even as the market for non-fungible tokens (NFTs) has grown over the past year, NFT sales are still a small part of the video game industry as a whole. The video game industry brought in $159 billion globally in 2020, according to data from Statista, which makes the total value of NFT video game sales last year--which SuperData estimated at around $400 million--equivalent to roughly 0.25% of global video game revenues.

While revenues from NFT sales were up 200% year-over-year in 2020, the total dollar amount involved with these sales is tiny compared to the $159 billion spent on video games last year.

It's possible that growth could accelerate if more major publishers get involved with NFTs, or if blockchain games are able to find mainstream success, but it's too soon to tell when or if that will happen.

There's a lot of VC interest in crypto/video game crossover companies

The Sandbox, a video game creation platform built on the Ethereum blockchain, is seeking to raise an additional $400 million in funding, according to a report by TechCrunch. The platform, which reportedly already holds more than $200 million in investment funds, is said to be valued at over $4 billion.

By building its gaming universe on the Ethereum blockchain itself and granting users digital ownership of items created inside it, The Sandbox has attracted many crypto-focused investors during its early development. According to TechCrunch, many VCs now see the success of The Sandbox as indicative of growing investor interest in crypto/video game crossover companies.

This isn't the first time we've seen this happen: Roblox (a direct competitor) recently filed for a US public offering that could value the company at over $30 billion and make it one of the largest IPO debuts ever seen in America.

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