Animoca Brands and the Blockchain - What is the Sandbox?
Read Time: 6 minutes
Share this article
Read Time: 6 minutes
Share this article
Animoca Brands is a Hong Kong-based gaming company that was previously listed on the Australian Stock Exchange, but recently decided to delist in 2020, pivoting towards cryptocurrencies and blockchain gaming. Its project, The Sandbox, has gained widespread attention from the crypto community, and has recently sold one virtual plot for a record price of US$4.3 million. In November, it was the first game ever to feature blockchain technology.
Recently, the company has raised $358,888,888 in a Series B funding round led by SoftBank Vision Fund 2, the first crypto asset investment of the fund. The funding will be used for product development and strategic acquisitions, as well as intellectual properties. Other investors in the round included Liberty City Ventures and the George Soros hedge fund. The money will also be used for further development of the Sandbox platform, which aims to be the premier entertainment destination in the metaverse.
The Sandbox, a leading decentralized gaming virtual world and subsidiary of Animoca Brands has been creating games for mobile devices without a blockchain component since 2011. In 2018, Animoca Brands acquired the developer studio Pixowl and rebranded the game to be blockchain-based. As part of this transition, the game adopted the Ethereum blockchain and made their games compatible with the NFT platform. Now, players can trade items and assets outside the game environment, verify ownership, and record transactions on the blockchain.
What’s more, players can store the blockchain records of their transactions. This means that the transaction history of game items can be searched and used in the future. The company introduced a new asset called the SAND token. SAND is a utility token that can be used to play games, purchase equipment, or customize avatars. The resulting price surge of SAND has fueled interest in the asset.
To begin using the Sandbox, users will need to connect their cryptocurrency wallets to the platform. In addition to establishing a connection with their wallets, they must also register for access to the platform. This can be done through email, social media accounts, or Metamask. The team is spread out across four countries, with support coming from start-ups, finance, and blockchain businesses.
LANDS in the Sandbox are digital real estate that players can own. Each LAND is a unique ERC-721 token on the Ethereum blockchain. Players can populate their LAND with ASSETS and even charge other players for access. Land owners can even participate in the governance of the Sandbox metaverse and monetize their LAND. The Sandbox metaverse features regular and premium LANDs. Players can also earn SAND by hosting events and content on their LAND.
LAND valuation in The Sandbox follows the same logic as real estate in the physical world but is based on size and location. Other factors such as land functionality and structural design will eventually come into play. The two primary factors that determine land value will remain unchanged. In addition, since The Sandbox is still a relatively early metaverse, price trends may still change. However, it is important to remember that prices in The Sandbox are still low, and there are many ways to earn passive income from the LANDs you own.
ASSETS in the Sandbox are virtual items that players own and can trade with each other to unlock special features. While the concept of using assets in games is new, there are many benefits to it. ASSETs can be used to add uniqueness to dioramas and LANDS. In some cases, rare assets could be collector’s items that become pillars in collector’s showrooms.
Players create an avatar, an in-game voxel representation of themselves. They can customize this representation to match their personal preferences and equip it with ASSETs (a type of currency on the Sandbox platform) to earn a steady stream of income. ASSETs are backed by SAND, the native token of the Sandbox platform. It plays a pivotal role in the blockchain game ecosystem. Players need to purchase games using SAND in order to gain access to the metaverse.
Metaverse has begun to blur as gaming platforms incorporate more and more non-gaming-related experiences.
Platforms like Roblox allow users to create and play games created by other users, while they retain their virtual identity when switching between games. The company also hosts virtual concerts or throw private parties, encouraging players to use the platform for virtual meetups. Video games are also creating new shopping channels within the metaverse. For example, clothing and shoe retailer Vans launched a virtual skatepark and store, allowing players to browse and purchase exclusive items.
The metaverse will provide tools and platforms to empower video game companies to expand far beyond their core market.
Would you like to explore gaming opportunities in the metaverse? Verchool can help.
Verchool is a pioneering Virtual Extended Reality (VER) metaverse development company, spread across five continents and ten global cities, to create, develop, and launch metaverse tech communities, platforms, spaces, studios, and labs for its clients.
Verchool provides corporates, conglomerates, governments and global family offices with exponential growth and competitive advantages via a multitude of VER metaverse technology solutions. These can be integrated with employee or customer engagement digital strategies that will provide additional brand equity, new revenue streams and the creation of new bankable digital assets.