SAND

Most recent update: [June 26, 2023]

What Is The Sandbox (SAND)?  

The Sandbox can be defined as a virtual world that allows players to create, own, and monetize their gaming experiences on the Ethereum blockchain. They can do this by utilizing the SAND token, which is the Sandbox’s primary utility token, enabling users to buy and sell digital assets.  

The Sandbox has been around for over a decade, and its core mission is highlighted very clearly in its official whitepaper. The platform aims to offer users an immersive metaverse where they can create their own virtual worlds and games while also collaborating with each other without the involvement of any central agency or authority. The Sandbox hopes to disrupt the current games dominating the space, such as Minecraft and Roblox, giving users ownership of their in-game assets and earning rewards in the form of the SAND token. The Sandbox looks to address the core issues faced by the current gaming market, where the centralization of ownership of user-generated content has significantly eroded the ownership rights of content creators.  

The central control of in-game assets and the trading of these assets limit players from generating adequate value for their creations, making it extremely difficult to prove ownership of the assets, especially since the content can easily be altered or copied. The Sandbox overcomes these limitations by significantly accelerating the adoption of blockchain technology and helping to grow the blockchain gaming space. The use of NFTs to represent in-game assets will ensure that ownership is established, with each asset being easily identified through the blockchain.  

How Does SAND Work?  

The Sandbox is a user-generated content platform that is part of the extended metaverse. Unlike other games that are part of the play-to-earn ecosystem, the Sandbox does not come with a prescribed set of rules. Instead, users have a set of free tools at their disposal to create their world and monetize it through LAND, which players can acquire using the SAND token. By acquiring LAND, players can own virtual real estate within the Sandbox ecosystem. Once users acquire LAND, they can build on it and populate it with NFT assets which can further be gamified. 

There are three different types of tools available for players in the Sandbox. These are VoxEdit, The Sandbox Marketplace, and the Game Maker. VoxEdit is a 3D modeling tool that allows users to create in-game assets such as Avatars, clothes, weapons, and more. The Sandbox Marketplace is the second tool provided by the Sandbox. Users can buy or sell their in-game assets in the Sandbox Marketplace. The Game Maker is the final tool provided by the Sandbox, allowing players to build unique 3D games that can be incorporated and used in the Sandbox.  

As a token, the SAND token works like any other ERC-20 token, with all transactions recorded on the Ethereum blockchain. As mentioned earlier, the Sandbox uses decentralized autonomous organizations that control all policies regarding the use of the SAND token. The DAOs comprise SAND token holders, and DAO members can vote on several important decisions such as awarding SAND tokens to creators, voting on which features need to be implemented in the Sandbox metaverse, and deciding on the roadmap of the platform.  

History And Founding Team  

As mentioned earlier, the Sandbox has been around since over a decade in different avatars, with its initial release coming in 2012, when Pixowl launched it. Pixowl was founded by Arthur Madrid, who had previously launched 1-Click Media with Sebastien Borget, the former project lead at the latter. Arthur still serves as the CEO o Pixowl, with Borget functioning as the Chief Operating Officer. The Sandbox started as a simple two-dimensional game, allowing players to create their own world. The game garnered significant popularity, and the Sandbox released its PV version in 2015. The game’s success saw the launch of a sequel in 2016, The Sandbox Evolution. The original game and the sequel have been downloaded over 40 million times.  

In 2018, Animoca Brands purchased Pixowl in a deal worth $4.785 million, which saw the evolution of the Sandbox into its current avatar, with participants being able to create, buy and sell NFTs and in-game assets.  

What Makes The Sandbox Unique  

The Sandbox brings blockchain technology to the gaming world, a huge and untapped market when it comes to blockchain. The Sandbox has created an open world where players can create or collect blockchain-based assets, creating a niche for itself in the gaming market. The Sandbox focuses heavily on user-generated content, helping create an ecosystem of heavily involved players that help the growth and development of the platform.  

So far, Sandbox has announced over 50 partnerships, with the most prominent ones being with SBS Game Academy, Polygon, CryptoKitties, and many more. The Sandbox give users access to some unique features such as  

• Security - Thanks to the use of blockchain technology, assets can be tokenized and traded in primary and secondary markets, which are managed through the blockchain, ensuring complete security from theft and fraud.  

• Interoperability - Blockchain technology also makes it possible for players to use shared assets, allowing assets from one game to be used on another game. This enables players and their assets to no longer be confined into a single game.  

The Sandbox also allows players to create their games for free through human-readable visual scripting tools.  

How Is The Sandbox Secured? 

As mentioned earlier, the Sandbox and its metaverse is built on the Ethereum blockchain and is secured through the Proof-of-Stake consensus mechanism. The SAND token is an ERC-20 token, allowing token holders to stake it and access staking rewards. Unlike its Proof-of-Work counterpart, Proof-of-Stake does not require significant amounts of computing resources or electricity. Theoretically, Proof-of-Stake transactions are more secure than Proof-of-Work because a larger group of users secures the validation. Proof-of-Stake also allows for diverse applications while still ensuring the complete security of the staked assets.  

The SAND Token And Supply Model  

The SAND token is the primary token of the Sandbox ecosystem and is an ERC-20 token. The SAND token has a maximum supply of 3,000,000,000 SAND and a circulating supply of 925,054,385 SAND. Out of the total supply of SAND tokens, around 25.82% of the tokens have been set aside in reserve. A further 17.18% were allocated towards the seed round; the founders and team members hold 31% of the total supply between them. An additional 12% were set aside for the Binance Launchpad sale, and 10% were reserved as rewards for advisors.  

Pros And Cons  

The Sandbox has several benefits that distinguish it from other platforms. The Sandbox guarantees the secure ownership of in-game assets for players and collectors alike, enabling them to easily and securely trade their assets within the Sandbox metaverse. Token holders are also eligible to participate in all key decisions regarding the platform and the project’s future direction. However, as with any other project, there are some downsides attached to the protocol. Platforms such as the Sandbox can be prone to cyberattacks and other similar malicious activities. Laws governing certain countries can also have an impact on the project, and the project could be outsourced to third parties in the future. 

Risks Associated With SAND 

As mentioned earlier, the Sandbox project can be vulnerable to cyberattacks. The other risk involves sudden changes in the laws governing a country, which could directly impact the future of the project. Alternatively, there is always the risk that the team could also outsource the project. The Sandbox is entirely dependent on the gaming community, which could be detrimental. While investing in crypto is already fairly risky, investing in SAND carries significantly more risk because the token’s use is restricted to the game. This gives rise to two problems; the token is used only by a limited number of users, affecting the value of the token and its ability to appreciate. 

Due Diligence  

Prior to listing The Sandbox on the VirgoCX Platform, VirgoCX performed due diligence on The Sandbox and determined that The Sandbox is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis including reviewing publicly available information on the following:  

• The creation, governance, and location of The Sandbox and/or its primary development team; 
• The supply, demand, maturity and liquidity of The Sandbox; and 

• Legal and regulatory risks associated with The Sandbox.  

Statutory Rights under Securities Legislation 

VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30, 2022 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada, do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.