The Sandbox - $SAND, Asset Review
General Information-What is The Sandbox
The Sandbox Background
The Sandbox Funding/Collaboration
Token Information-Tokenomics
Staking/Governance
Additional Information-
The Sandbox Asset Ecosystem
Technical Analysis
Conclusion
General Information-
1. What is The Sandbox
The Sandbox is a gaming ecosystem in the metaverse where users can share, create, and monetize their gaming experience on the blockchain. It's a game that allows players to buy digital plots of LAND, customize them to their liking and create experiences around them with other players. Sandbox is playable on platforms like Mac, PC, and mobile devices that allow almost anyone with an internet connection to participate. The metaverse is here and Sandbox is at the forefront of turning the digital world into reality. With the use of NFTs, Sandbox is giving users real ownership over things they buy and rewards for in-game participation.
2. The Sandbox Background
TSB Gaming LTD is a project based out of San Francisco and was founded by Arthur Madrid and Sebastien Borget. Both founders have a strong gaming sector background as they used to work at Pixowl for a decade each and are now breaking into blockchain gaming. Additionally, they are both a part of blockchain gaming companies like Blockchain Game Alliance and are board members for Animoca Brands outside of The Sandbox. The Sandbox was best known for its mobile games released in 2011, and 2016. They combined a total of 40 million downloads across Android and iOs. They then decided to take a step further by advancing into the blockchain ecosystem in 2018 giving users real ownership via NFTs.
3. The Sandbox Funding/Collaboration
The Sandbox has been through funding rounds, both seed and ICO with the following firms: SoftBank, Adrian Cheng, Coinbase Ventures, Binance Labs, ParaFi Capital, Winklevoss Capital Management, and more. The Sandbox team held an ICO for 12% of the supply, raising 3 million dollars. The Sandbox has been working with multiple brands to continue building out the Sandbox experience. Most recently The Sandbox has partnered with Playboy and Tony Hawk to add more experiences that are not included in the list below. The Sandbox also operates with seasons, which indicates they are going to continuously add new features and keep pushing the envelope for new and fresh ideas. It will be truly exciting to watch what they announce in the coming seasons to compliment their game.
Figure A
Token Information-
1. Tokenomics
$SAND(The Sandbox) is an ERC-20 token that is used on The Sandbox network. Currently, the total supply of $SAND is 3,000,000,000 with a circulating supply of 1,264,290,508. During the seed sale, 17.18% of the supply was sold. Strategic sales made up 4% of the total supply. Launchpad sale equated to 12% of the total supply and was public during an IEO. The foundation also has 12% of the supply to build out the network. The company reserve makes up 25.82% of the supply. Lastly, the Founders, team, and Advisors make up 29% of the supply. It is important to note early investors have a 100% lock with a 5-year vesting period. The token release schedule is also shared below.
2. Staking/Governance
$SAND is the native token for The Sandbox network. Currently, $SAND is used for acquiring in-game assets, uploading assets to the marketplace, governance, utilized for paying transaction fees, liquidity mining, and for staking purposes. The $SAND token has a multi-purpose use that is derived mainly from the game. In February of 2022, The Sandbox team uploaded a video sharing how to stake for $SAND tokens. At the time of their upload, users could have earned 26.27-47.83% APR for staking. The percentages may fluctuate with time, as the more people who participate result in a lower yield. $SAND token holders will eventually be able to vote over the rights of the treasury and may propose new amendments. Gaming with the use of governance might shift the gaming sector into new unimaginable possibilities.
Figure C
Additional Information-
1. The Sandbox Asset Ecosystem
There are a few different tokens/assets that are used in-game. These assets are a part of the ecosystem, which entail $SAND, LANDS, ASSETS, GEMS, and CATALYSTS. Each asset in-game may vary as they all have unique properties. Due to the complexity, we will brush over each asset to help one achieve an easy understanding. $SAND is used as an in-game currency. It may be used to upgrade a character, buy land, or even donate. LANDS are worlds in which a user may create to have their own experiences. ASSETS are models that one may create and trade with other users. GEMS are scripted assets that power up existing assets. CATALYSTS are not in the graphic below but are like a unique tool that allows one to burn into ASSETS. CATALYSTS are more complex as they may range by their “power” accordingly. All of these elements play a crucial role in the Asset Ecosystem.
Figure D
2. Technical Analysis
Figure E
$SAND has had an amazing run from $.008 to $8.80 yielding ~1000x + returns! Ever since $SAND hit all-time-highs, we have seen the price fall towards a high time frame demand zone (grey box) which should act as a support region. Price is likely to consolidate in the grey box before making a new move. The way the correction subdivides will give hints on how the next move plays out. Bottom structures typically take a long time to form and reverse when the bears are exhausted, so it's best to stay patient for a clear pattern. All in all, the price action of this chart is very bullish over the long term, and holding the support will be crucial.
(Side note) - The price at the moment may have a run as it is forming a bullish neutral triangle pattern*** Depending on the velocity, volume, speed, and sentiment of the next move up from here, if we get one may change my grey high time frame zone.
Conclusion
With the momentum The Sandbox has during its 4-year lifespan, it's pretty obvious they know what they are doing. The team has the relevant experience to make The Sandbox become the metaverse that we all potentially play on. Each property of this game has been thought out well, and because of that, they have been seeing the success that comes along with it. The thing that stands out for me is that NFTs in the metaverse make it a unique value proposition. As an ex-Minecraft player, the idea of owning and then selling LAND or other ASSETS makes it extremely different. This value will be a crucial factor in determining whether or not it can disrupt games like Minecraft and Roblox. If they are successful in doing so, then the sky is the limit for the price of $SAND. I am personally bullish on what The Sandbox team will bring next and I can’t wait to see what’s to come. Lastly, it is important to note that I believe The Sandbox value may grow if it isn’t correlated with the value of the $SAND token.