Two years ago, the company intended to raise $400 million at a valuation of $4 billion.
- The Sandbox plans to utilize the funds to improve features and create a decentralized metaverse for mobile devices.
- The valuation has dropped from $4 billion to $1 billion since 2022.
- SAND increased by 4.5% following the funding round announcement.
The Sandbox, a leading metaverse platform, has successfully raised $20 million at a $1 billion valuation to further enhance its user-generated multiplayer gaming platform.
The funding round was spearheaded by Kingsway Capital and Animoca Brands, with significant contributions from LG Tech Ventures and True Global Ventures.
Previously, in 2022, The Sandbox aimed to raise $400 million at a $4 billion valuation.
Following the announcement of the new funding round, The Sandbox’s native token, SAND, surged by 4.5%, bringing its market cap to $1.1 billion, according to CoinDesk.
A portion of the new capital will be allocated to developing a decentralized metaverse for mobile devices, anticipated to launch in 2025. Additionally, The Sandbox will enhance its Game Maker and 3D editor tools.
“McKinsey estimated that by 2030, the metaverse could contribute $5 trillion to the global economy,” said Yat Siu, co-founder of Animoca Brands. “Today, games like Minecraft and Roblox dominate the market, but they lack digital property rights for users. The Sandbox represents the future of UGC games in the era of digital ownership.”
The Sandbox boasts 5.7 million user accounts connected to crypto wallets, with over 1,000 user-generated experiences created since the Alpha version debuted in November 2023.