Non-fungible token (NFT) gaming platform The Sandbox is looking to raise about $400 million in a funding round from new and previous backers at a valuation in excess of $4 billion, Bloomberg reported Tuesday (April 19), citing unnamed sources with insider information.
The Sandbox is developed and published by Pixowl, a subsidiary of blockchain gaming developer Animoca Brands. Animoca Brands acquired a majority stake in The Sandbox in 2018.
Founded in 2011, The Sandbox allows users to trade and monetize virtual assets on the Ethereum blockchain using $SAND, the main utility token of the platform, according to its website.
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Its metaverse offers virtual worlds and games created collaboratively without a central authority. The platform features animated 3D objects and game creation with no-code, in-game visual scripting and NFTs that players can use to transfer their assets from one game to another.
The funding round is still in the works and the size of the round and the company’s valuation could change, the sources told Bloomberg. The Sandbox didn’t immediately respond to requests for comment.
Softbank Vision Fund 2 led a $93 million Series B funding round in November 2021, which The Sandbox used to accelerate the creation of its open metaverse. However, Sebastien Borget, co-founder and chief operating officer (COO) of The Sandbox, said at a press conference in Lisbon earlier in April that the startup could seek new funds to expand its workforce and make acquisitions, Bloomberg reported.
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The No. 2 blockchain-based metaverse, The Sandbox got into the metaverse in 2018 and introduced user-generated content before expanding into sales of virtual land and merchandise and hosting concerts and other events.
Warner Music Group is planning concerts in The Sandbox and is just one of many brands and companies pouring funds into the metaverse.
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