The Sandbox to lay off 50% of workforce as metaverse pioneer pivots to memecoin launchpad: report

Sandbox layoffs have reached a critical milestone as the metaverse platform that during the NFT boom raised $93 million from SoftBank undergoes a dramatic transformation by laying off 250 employees—half its workforce—and pivoting to a memecoin launchpad business model.

Virtual world pioneer The Sandbox is reportedly planning to lay off more than half of its workforce and replace its co-founders with a new CEO, marking a dramatic shift for the once-prominent metaverse platform.

The news, first reported by French journalist Gregor Raymond on August 28, signals what many industry observers view as an inevitable reckoning for a company that has struggled to justify its valuation amid declining interest in virtual worlds and NFT gaming.

Founded by Arthur Madrid and Sebastien Borget, The Sandbox emerged as a flagship project during the 2021 NFT boom, promising immersive digital experiences and virtual real estate opportunities.

The company has so far not commented on the report, though reaction online has been one of muted expectations for metaverse projects, particularly in the latest cycle.

This potential transformation—from metaverse gaming platform to what sources suggest could be a memecoin trading launchpad—would represent one of the most significant strategic pivots in cryptocurrency history. It underscores the broader challenges facing virtual world platforms that once commanded premium valuations but have struggled to maintain user engagement and revenue streams.

The development raises questions about whether this marks a broader bottom for the metaverse sector that once attracted billions in investment.

Sandbox layoffs pivot: 250 staff cuts as memecoin launchpad transformation begins

This strategic shift reflects The Sandbox’s ongoing struggles with user retention and engagement in a metaverse environment that has struggled to maintain relevance since the post-pandemic decline in virtual world interest.

In November 2021, during the peak of the NFT and metaverse boom, The Sandbox raised $93 million in a Series B funding round led by SoftBank’s Vision 2 fund. Prior to that, The Sandbox completed a 2020 initial coin offering to launch its native SAND (SAND) token, which has plummeted in value by over 95% from its all-time high.

Still, industry analysts have long pointed out that The Sandbox’s business model was fundamentally flawed, citing the lack of accessible virtual reality hardware for mainstream metaverse adoption. The practical utility of digital spaces not directly connected to engaging gameplay experiences now appears questionable in hindsight.

For a company once valued at $1 billion, The Sandbox’s strategic pivot represents a shift toward a leaner, more profitable enterprise model inspired by Pump.fun (PUMP), rather than continuing as a traditional gaming or metaverse platform.

According to recent statistics, Pump.fun, the Solana-based memecoin launchpad, has surpassed $800 million in total revenue to date, generating over $1 million daily in platform fees as of August 2025.

Across the sector, memecoin market capitalization fluctuated, rebounding to nearly $75 billion on August 11 before settling at around $66 billion later in the month.

Other metaverse projects such as Decentraland (MANA) have also faced significant challenges recently. The platform, once valued at over $6 billion, has seen MANA token prices decline by over 95% from their all-time high reached in November 2021.

Memecoin launchpad trend: metaverse sector faces widespread challenges as projects struggle

Still, a key issue in the wake of Animoca Brands’ takeover of the company remains The Sandbox’s crypto treasury, which reports estimate to be between $100-300 million.

The height of the NFT and metaverse boom of late 2021 seems like a distant memory for many, reflecting a dramatic decline and broader cooling after massive speculation poured in from major brands and celebrities.

The ultimate fate of this strategic transformation will be determined by The Sandbox DAO, which must vote on improvement proposals that dictate how the platform’s substantial treasury resources will be allocated moving forward.

However, what remains certain is that under Animoca Brands’ new leadership structure, The Sandbox’s transformation from a once-dominant metaverse platform into a streamlined memecoin launchpad represents a fundamental shift for a company once touted as the new Facebook.