The Sandbox, a Hong Kong-based gaming platform which allows users to create a virtual world with non-fungible tokens using NFTs, has raised $93 Million from investors led by SoftBank’s Vision Fund 2. This was recently disclosed by the company.
This latest round of fundraising was completed just over a year ago. The company experienced rapid growth in monthly active users and surpassed $144 million in transactions volume on the platform. This is Vision Fund 2’s first investment in a company that issues its own cryptocurrency.
The Sandbox is owned by Animoca Brands, a blockchain gaming developer. Animoca allows players to create, own and monetize virtual gaming experiences on Ethereum. It gives creators ownership through NFTs and provides tools for creating assets on the platform.
It announced partnerships with brands and celebrities, such as rapper Snoop Dogg who will create a digital replica of his home in the Sandbox’s metaverse.
Although the company did not disclose its valuation, the market capitalization of the Sandbox coin, the cryptocurrency it backs has reached nearly $2 billion. According to the company, it currently holds about 22% of tokens.
After Facebook’s announcement recently that it would be changing its name to Meta Platforms Inc, the price of the coin jumped more than 200%. This sparked investors’ interest in companies who create metaverse gaming experiences. Metaverse is the concept of a shared virtual platform that users can access from different devices and navigate digitally.
The investment will fuel the Sandbox creators’ economy, as it expands beyond gaming into fashion and architecture.
“We are creating an open metaverse. Sandbox is being positioned against giant tech companies that claim the metaverse as theirs. “We are offering an alternative where users come first”, Sebastien Borget (chief operating officer and cofounder) said.
SoftBank led several fundings this year in NFT-related businesses amid explosive growth for NFT market. Recent investments include Candy Digital, a sports NFT startup, and NFT fantasy soccer game Sorare.