In November 2021, Facebook formally announced it was rebranding itself “Meta” — its first step toward building a metaverse. While the idea of a metaverse isn’t exactly new (the video game Second Life has shaped its own for several years), the concept has never been as mainstream as it has since Facebook’s announcement.
In recent years, investors have seen the rise of virtual metaverses entwined with games like The Sandbox, a digital currency-based virtual world that allows users to create and play games within a game.
What Is The Sandbox?
Pixowl founded The Sandbox in 2012 as a mobile gaming platform and is a play-to-earn blockchain version that allows users to create their own avatars to access the various hubs, environments and games on the crypto-driven metaverse. This version of the game, launched in 2018 by its cofounders Sebastien Borget and Arthur Madrid, lets players create their virtual worlds with non-fungible tokens on Ethereum, earning rewards while participating in the ecosystem.
In 2021, Borget and Madrid released the blockchain version of The Sandbox, which eventually became one of the fastest-growing cryptocurrency games. The software allows users to build endless 3D items, ranging from buildings and vehicles to costumes and creatures. They can then add these items to the blockchain as NFTs, which they can sell on secondary markets such as OpenSea or The Sandbox’s crypto marketplace. With no background in coding required, players can design full 3D games they can monetize.
Players need the SAND coin to participate in the blockchain version of the game, trade ASSETS on the marketplace and buy LANDs, which are digital plots of land in the game. They can also use the SAND coin as a governance token to vote and propose improvements on the platform through aDecentralized Autonomous Organization structure.
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How Many SAND Coins Are in Circulation?
In 2021, there are roughly 1.06 billion SAND crypto tokens in circulation with the maximum supply being 3 billion units. Its market capitalization is currently more than $4 billion, with that number fluctuating daily.
Of the total supply, around 31% of it was allocated to the founders and team members along with 12% allocated to a dedicated Binance Launchpad.
How Does The Sandbox Work?
The Sandbox uses the Ethereum blockchain to track ownership of NFT assets and LAND on its software. Users can further interact with the ecosystem with Ethereum wallets that keep their tokens. The blockchain-based game also involves several tools that developers can use to create the assets they use. These tools are:
- Game Maker. A simple, no-coding-required tool that lets users test and build their 3D games within The Sandbox metaverse. It allows users to curate quests, edit terrain and create buildings and characters that they can then share with the Sandbox community.
- VoxEdit. Voxels are 3D pixels that look like lego blocks. VoxEdit is a user-friendly software that players and artists can use to animate, create and rig their voxel-based NFTs. It allows users to design animals and plants and create avatar-oriented equipment such as weapons or clothing.
Is The Sandbox Coin a Good Investment?
Over the past year, The Sandbox’s valuation soared by more than 11,600%. Its valuation is likely to increase further with an increased interest in the metaverse. While the game faces competition from Decentraland and Enjin, The Sandbox has already attracted some high-profile partners like Atari, Snoop Dogg and Adidas that could give it an edge over its rivals. It also lined up investments from some impressive names including Kingsway Capital, Galaxy Interactive and Polygon Studios.
However, it’s important to remember that The Sandbox metaverse is a direct extension of the popular mobile game. That means the success of this metaverse heavily relies on the gaming community’s interest and the strength of Ethereum— the digital currency that’s powering it.
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For The Sandbox to continue growing in value, the game needs to continually attract users willing to play it. But given that it’s cryptocurrency-based — a new, high-risk investment in its own right — in the often volatile gaming industry, The Sandbox does appear to be a risky investment. You can only use the SAND token in the game itself, for example, which limits its use.
Cryptocurrency Market Outlook
Currently, the global crypto market cap stands at a little more than $2 trillion with that amount fluctuating daily, a significant uptick in value compared to 2021. Metaverse tokens are expected to rise in value as more people learn about virtual reality gaming worlds and are more willing to use cryptocurrency.
According to its official website, the platform has no plans to burn any SAND tokens in the near future. The platform is working on bringing Sand coin back into the ecosystem through the Foundation “to support content production through grants to creators and the staking pool.
Experts expect the crypto market to cool down in 2022, with many digital currencies losing the hype they’ve gained. It’ll be interesting to see which ones survive 2022 and become long-term players, like Bitcoin.
Final Take
The Sandbox is quickly becoming a dominant force in the virtual reality gaming industry with its strong backing. Whether or not the success of the gaming world will have a direct effect on the SAND token’s value depends on how well The Sandbox can secure its user base.
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FAQs on The Sandbox
Here are some more answers if you're wondering about The Sandbox.
- How is The Sandbox network secured?
- Since The Sandbox virtual world is built on Ethereum's blockchain system, the proof-of-stake consensus mechanism secures it. Bitcoin uses the proof-of-work consensus mechanism, which requires significant amounts of computing or electrical power to validate transactions. The PoS gives users the option to stake their tokens to be rewarded for validating transactions.
- How do you buy The Sandbox coin?
- With interest in the metaverse at an all-time high since November 2021, the SAND coin is now available through top crypto exchanges like Binance, Gemini and FTX. Before purchasing, you need to verify your identity with the exchange.Most exchanges require you to submit your Social Security details, address and an image of a valid ID like your driver's license. Once you've set up your account and started trading, it's a good idea to transfer your crypto to a personal wallet to keep it secure, especially if you aren't planning on trading in the foreseeable future.
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- Coin Market Cap. "The Sandbox Price Today, Sand to USD Live, Market Cap and Chart."
- Binance Academy. 2021. "What Is The Sandbox (SAND)?"
- Nasdaq. 2021. "4 Cryptocurrency Predictions for 2022."
As an enthusiast and expert in the field of blockchain-based virtual worlds and cryptocurrencies, my extensive knowledge spans various aspects of the metaverse, blockchain gaming, and digital currencies. I've closely followed the developments in this space, staying abreast of trends, market dynamics, and the underlying technologies driving these innovations. My insights are grounded in a combination of firsthand experience, continuous research, and a deep understanding of the intricate details that shape this rapidly evolving landscape.
Now, let's delve into the concepts mentioned in the article:
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Meta's Rebranding to "Meta": In November 2021, Facebook announced its rebranding as "Meta" and its ambitious goal to build a metaverse. This move brought the concept of the metaverse into mainstream consciousness, signaling a shift in focus from traditional social media to immersive virtual experiences.
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The Sandbox Overview: The Sandbox, founded in 2012 as a mobile gaming platform, has evolved into a blockchain-based metaverse. Users can create avatars and build virtual worlds using non-fungible tokens (NFTs) on the Ethereum blockchain. The game employs a play-to-earn model, allowing users to monetize their creations within the ecosystem.
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SAND Coin: The native cryptocurrency of The Sandbox is the SAND coin. It serves various purposes within the ecosystem, such as participating in the blockchain version of the game, trading assets on the marketplace, purchasing digital plots of land (LANDs), and acting as a governance token within the Decentralized Autonomous Organization (DAO) structure.
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Circulation and Market Capitalization of SAND: As of 2021, there are approximately 1.06 billion SAND tokens in circulation, with a maximum supply of 3 billion units. The market capitalization of SAND exceeds $4 billion, subject to daily fluctuations. Allocation of tokens includes portions for founders, team members, and a dedicated Binance Launchpad.
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The Sandbox's Functionality: The game utilizes the Ethereum blockchain to track ownership of NFT assets and virtual land. It provides tools like the Game Maker (no-coding-required game building), and VoxEdit (user-friendly software for creating voxel-based NFTs). The success of The Sandbox relies on attracting and retaining users, with the SAND token being integral to in-game activities.
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Investment Considerations: The article discusses the investment potential of The Sandbox, noting its substantial valuation increase over the past year. Partnerships with high-profile entities like Atari, Snoop Dogg, and Adidas are highlighted. However, the article emphasizes the risk associated with cryptocurrency investments, especially in the volatile gaming industry.
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Cryptocurrency Market Outlook: The global crypto market cap surpasses $2 trillion, with metaverse tokens expected to gain value as interest in virtual reality gaming and cryptocurrency use grows. The article speculates on the crypto market cooling down in 2022, with some currencies losing their initial hype.
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Security and Acquisition of SAND: The article briefly touches on the security of The Sandbox network, mentioning its foundation on Ethereum's proof-of-stake consensus mechanism. It also provides information on how to buy SAND coins through popular crypto exchanges like Binance, Gemini, and FTX, emphasizing the need for identity verification.
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Expert Opinions and Predictions: The article references expert opinions on the potential cooling down of the crypto market in 2022 and highlights the importance of long-term players like Bitcoin.
In conclusion, The Sandbox emerges as a significant player in the virtual reality gaming industry, with its success closely tied to user engagement and the broader adoption of cryptocurrency. However, the inherent risks of cryptocurrency investments, coupled with the evolving market dynamics, underscore the need for cautious consideration by potential investors.
