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We recently partnered up with 7investing to help investors get a better, consolidated view of the opportunities in both equities and cryptocurrencies. 7investing provides its top-seven stock market recommendations every month, while we provide our top-rated crypto assets. This month, our teams discuss the importance of blockchain gaming, decentralization, the downfall of Libra/Diem, and more!
Blockchain games - Sandbox
Simon Erickson, 7Investing: “(the sandbox token) I’ve seen the market capitalization of that rise from $150 million a year ago to $5 billion or thereabouts here today. That’s been a popular one.”
The Sandbox is a Minecraft-esque virtual world where players and creators can make 3D assets and monetize them using NFTs and The Sandbox’s native currency SAND. The Sandbox has been around for eight years, but only recently moved into blockchain (Ethereum).
The Sandbox features three main components: the VoxEdit NFT (non-fungible token) builder for building voxel game assets, the Marketplace for buying and selling assets, and the Game Maker tool where complete interactive games can be constructed and shared.
The Sandbox gaming environment will be divided into five types of tokens:
- SAND – The in-game currency, with a 3 million hard cap, used across The Sandbox ecosystem.
- LANDS – Community-created worlds in which players play.
- ASSETS – 3D virtual images created by players and traded in the marketplace.
- GEMS – ERC-20 tokens burned to give attributes to ASSETS. GEMS are ERC-20 tokens.
- CATALYSTS – ERC-20 tokens burned to mint ASSETS. Depending on their power, CATALYSTS allow users to associate a certain number of GEMS to an ASSET.
SAND and LAND are the primary tokens of the ecosystem. Here’s a breakdown
- The medium of exchange in The Sandbox's ecosystem.
- Needed to post items for sale in the marketplace
- Used in governance of protocol
- Used to stake
- The total circulating supply of SAND is 3 million
- A digital piece of real estate in The Sandbox metaverse that players can buy to build experiences on top of. Once a player owns a piece of LAND, they’llll be able to populate it with games and ASSETS.
- Multiple LANDs can be combined to form an ESTATE.
- A total of 166,464 LANDs will ever be available, contained in a map that will form The Sandbox metaverse.
The first version of The Sandbox was released as a mobile game in early 2012 as a collaboration between Pixowl (led by Sebastian Borget and Arthur Madrid) and game developer onimatrix. In 2018, game developer Animoca acquired Pixowl and the company announced its intentions to create a 3D sandbox-style world by leveraging blockchain technology to take advantage of user-generated content (UGC) and token economics.
The Sandbox team held an initial coin offering (ICO) in August 2020, raising the equivalent of $3 million to fund its future operations.
Notable entities who have acquired Land in The Sandbox’s metaverse include crypto projects such as NiftyGateway, 21x, Gemini, as well as renowned Silicon Valley based VCs and investment partners including Bill Lee (Co-Founder of Craft Ventures), Ken Howery (Co-Founder and former Managing Partner at Founders Fund), Sundeep Madra (Vice President at Ford X), Galaxy Interactive, Alex Reece (early investor in Unity, Draft Kings and Lyft), Michael Witz (Founder of Redemption Games).
The Sandbox metaverse has focused on creating licensing agreements to feature major brands including The Smurfs, Atari, Rollercoaster Tycoon, Care Bears, and Shaun the Sheep. Licensing intellectual property from existing brands will enable The Sandbox to use the characters, games, or respective content in its metaverse.
5% of all marketplace transacted value is collected as transaction fees. The other 95% of all transacted value is collected from LAND sales, premium NFT sales, and subscription services. A total of 26.5% of all SAND transaction volume goes back into the foundation.
