A voxel-based game that distributes control back to its players.
Analysis by Ray | #001 | February 9, 2022
Table of Contents
Potential Red Flags
- Tokenomics – An ICO was conducted for the initial SAND distribution.
- Tokenomics – The majority of all SAND is held by the company/team, advisors and strategic investors.
- Tokenomics – The majority of SAND is currently locked up and not circulating in the open market.
- Community – The team is currently 100% responsible for the project’s direction (DAO in the works).
Tokenomics – An ICO was conducted for the initial SAND distribution.
Tokenomics – The majority of all SAND is held by the company/team, advisors and strategic investors.
Tokenomics – The majority of SAND is currently locked up and not circulating in the open market.
Community – The team is currently 100% responsible for the project’s direction (DAO in the works).
Developed by Pixowl, Inc. (an Animoca Brands’ Company), The Sandbox aims to be a voxel gaming platform that distributes control back to its players.
The company believes that using cryptocurrency and NFTs, creators can gain more value for their creations in games. This model is being tested now, as the official game has been released.
Future updates include launching of a DAO with staking and voting mechanics, hosting virtual concerts, and a mobile version of the game.
No technical issues were identified for the project.
SAND was made available in an ICO during the period between May 2019 and November 2019.
Within the ecosystem, SAND has multiple purposes. Some of which include using the coin as a medium of exchange, a governance token, staking, rewards and more.
Most of the coins are not currently in circulation. The total coin supply could see inflows from vested coins in the future, with all the coins having been distributed during the ICO.
A specific annual inflation rate for SAND was not able to be determined.
The Sandbox has over 1.5 million followers, with a presence spanning across 6 social media platforms.
The Sandbox has many notable partnerships including Snoop Dogg, Adidas, Atari and more. Some notable investors in the platform include Square Enix, B Cryptos, TGV and Mindfulness Capital.
The Sandbox is currently at the top of the GameFi/blockchain gaming niche, with a market capitalization of approximately $4.9 billion as of February 9, 2022.
Based on the research conducted, The Sandbox (SAND) appears to be a fundamentally strong project.
What is the URL of the official cryptocurrency project website?
Are there any obvious errors on the website (broken links, misspelling, grammar, etc.)?
No obvious spelling, grammar, etc. mistakes were found on the official website pages.
Is comprehensive documentation available for the project?
Comprehensive documentation can be found on the official website for The Sandbox. There are links to news coverage for the project, FAQs, a Whitepaper, product pages and others.
Project Use-Case and MVP
What problem is the project trying to solve?
Central authorities (like the game creators at Minecraft and Roblox) have control over the trading of virtual goods created by their players. This restricts the players from receiving full value for their creations.
What is the project’s solution to the problem the project aims to solve (aka use-case)?
To solve the value disparity, The Sandbox aims to be a voxel gaming platform where creators can craft, play, share, collect and trade – without centralized control. This framework of ownership is made possible using NFTs on the platform. Value is further accrued by creators having the ability to earn the (SAND) cryptocurrency.
Is there a working product (MVP)?
The Sandbox currently has a working product. The gaming ecosystem currently consists of three key components:
- Voxel Editor – This simple 3d modelling system allows anyone to create and animate 3d objects that can be ported into the game as an asset.
- Marketplace – The web-based marketplace allows users to publish their created 3d objects for sale.
- Game Maker – Anyone who owns assets can use these assets to build on a virtual piece of land in the game. All of which the user will own. Most importantly, these placed assets will have predefined behaviors (through visual scripting) which will allow for a full game experience.
Is there a known development team for the project?
The Sandbox was created by Pixowl, Inc. (which is a subsidiary of Animoca Brands).
Where is the development team headquartered?
The lead development company for The Sandbox is headquartered in Hong Kong and has offices worldwide.
Are there known sustainable incentives to grow/retain developers?
There are multiple funds available on The Sandbox:
- Creator Fund – For asset creators with proven skills in asset design or voxel art.
- Game Maker Fund – A fund for game or diorama designers.
- Ambassador Program – A group of community members that get rewarded for their contributions to The Sandbox ecosystem.
Audits and Recent Issues
Has the codebase undergone a 3rd party audit by a reputable company/extensive public testing?
The Sandbox has 6 audits available from Certik. Currently, the platform has a security score of 91% as of February 9, 2022.
Founded in 2018 by professors of Yale and Columbia, CertiK is a pioneer in blockchain security, utilizing best-in-class Formal Verification and AI technology to secure and monitor blockchains and Web3 apps.
Does the project have any known, recent (within the last 6 months) technical issues?
At the time of writing, no recent technical issues were identified for the platform.
Is there a clear roadmap for development?
A comprehensive roadmap is available on the official website for The Sandbox. Upcoming developments include:
- Launch of the DAO with staking and voting mechanics.
- Virtual concerts.
- A mobile version of the game.
Have any significant milestones within the roadmap been reached?
The roadmap for The Sandbox extends back to 2011. The company behind the game has made strides towards accomplishing its goals. Some notable achievements include:
- 2018 – The Sandbox surpasses 40 million downloads and 70 million player creations
- 2021 – The Game 1.0 official release
- 2021 – Launch of the first NFT Avatars
What is/are the intended use(s) of the project coin within the project?
The SAND cryptocurrency:
- SAND is the medium of exchange for making purchases in The Sandbox marketplace.
- The coin will also allow users to participate in the governance of the platform.
- SAND is used to earn staking rewards.
- While some games in the ecosystem are free-to-play, game designers can choose to charge SAND to play.
- You can use SAND to hire game designers and artists to collaborate on projects.
- A reward for winning contests.
- Fees are generated on transactions that help fund the ecosystem.
Official NFTs are also available for The Sandbox, but NFTs are out of the scope of this current investigation.
How is consensus determined?
Transactions are validated on the Ethereum network.
When was the project’s coin launched?
SAND was made available for the first time during the period between May 2019 and November 2019.
Initial Coin Offering (ICO)
Was there an Initial Coin Offering (ICO)?
Yes, the company completed a private placement round.
What was the initial coin distribution?
Total SAND supply – 3,000,000,000:
- Seed Sale – 17.18%
- Strategic Sale – 4.00%
- Launchpad Sale – 12.00%
- Foundation – 12.00%
- Company Reserve – 25.82%
- Founders & Team – 19.00%
- Advisors – 10.00%
How do coins come into public circulation?
All the SAND that will ever exist have already been generated. SAND acquired by investors during the Private Sale in 2019 and by the Founders, Team, and Advisors are 100% locked with 5 years vesting and 12-month cliff.
What is the yearly inflation rate of the coin?
All the locked coins will be available in 2024, per the vesting schedule. A specified annual inflation rate of the coin supply could not be determined, as other factors are at play (such as staking).
Are most of the coins in circulation (>50%)?
Per CoinGecko, approximately 1 billion SAND are circulating out of 3 billion total, which translates to 33%.
Which industry or community does the cryptocurrency project aim to serve?
The Sandbox aims to serve the Minecraft and Roblox community, as well as other gamers with a similar gaming preference.
What is the size of the official project social media pages (Reddit, Telegram, Twitter, YouTube)?
As of February 9, 2022, The Sandbox has:
- 269k Discord Members
- 125k Telegram Members
- 815k Twitter Followers
- 25k Twitch Followers
- 129k YouTube Subscribers
- 153k Instagram Followers
Are the social media posts and reactions related to the project recent and do they appear organic?
The posts related to the project are recent and the community appears to be organic.
Are community members generating their own independent content to promote the project (YouTube, TikTok, Etc.)?
Community members are generating their own independent content relating to The Sandbox gameplay, SAND analysis, interviews and more.
Partnerships and Investors
Does the project have any notable partnerships?
The Sandbox has many notable partnerships including:
- Snoop Dogg
- The Walking Dead
- Animoca Brands and more.
Does the project have any notable investors?
Some notable investors in the platform include Square Enix, B Cryptos, TGV and Mindfulness Capital.
What is the project’s governance process (if any)?
The roadmap indicates that a DAO is scheduled to launch in Q2 of 2022. It will include voting and staking mechanisms and allow for major decision making on the platform.
What are the most prominent directly competing projects?
The Sandbox is currently at the top of the GameFi/blockchain gaming niche, with a market capitalization of approximately $4.9 billion as of February 9, 2022. Axie Infinity is close at $4.7 billion.
Get the full The Sandbox (SAND) Fundamental Analysis Package #001
The package contains the following original documents:
- The Dark Paper (.pdf) – Web3 Project Fundamental Analysis and Research
- Scoring Rubric (.xlsx) – Project Scoring and Analyst Commentary
- QC Checklist (.xlsx) – Analyst Quality Score Via Peer-Review
Below are sample images of The Sandbox (SAND) Dark Paper.