Sandbox Metaverse Review: Why (Not) Invest in Sandbox?
30 mei 2022 
9 min. read

Sandbox Metaverse Review: Why (Not) Invest in Sandbox?

To invest or not to invest in Sandbox? This question is the focus of our Sandbox Metaverse review. We begin the review with an overview of Sandbox. Why is it popular? What are its investment options? Then we look at reasons for yes/no investing in Sandbox as a "metaverse play". Let's get right to the review! 

Please note: Sandbox is a crypto project. Crypto investing is not for beginners. There are high risks and in our opinion it does not belong to investing but to speculating. This is an essential difference. We invest in the best stocks based on financial and fundamental analysis. With cryptocurrencies, such analysis is not possible, and therefore it is very difficult to determine whether a cryptocurrency will rise or fall in the future.

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The Sandbox, built on Ethereum blockchain, is quickly becoming a prominent player in the metaverse ecosystem. The "metaverse" is a virtual world that contains many other virtual worlds. Sandbox Metaverse allows users to create their own unique virtual reality worlds and share them with others in real-time. Investing in metaverse is a popular item right now. However, one should be aware that buying during hype is not a wise move.

A short review

A brief review of Sandbox Metaverse is this: as a user, you can log into the virtual world and participate in role-playing, creating, owning, ruling and earning game skills through the cryptotoken on the platform called SAND. Everything created in Sandbox Metaverse is displayed on pieces of land called LAND. Players can use this land to build and develop, or to sell (for profit).

The core of the Sandbox is user-generated content. GameMaker, VoxEdit, and Marketplace power the Sandbox. Using VoxEdit, players can design 3D objects called ASSETS. ASSETS can include avatars, characters, weapons, and even digital art. These ASSETS use the newer ERC-1155 token standard, which makes them fungible and unique. Using Game Maker, these assets can be placed on LANDs and incorporated into gameplay. 

All assets created can then be exported to the Marketplace to be sold or traded as NFTs. NFTs, or non-fungible tokens, are digital items that can be traded on decentralized marketplaces, with rights bound to creators and ownership proof. 

At its core, Sandbox Metaverse is based on the Sandbox mobile game, which Apple recognized as the 2012 game of the year. And Sandbox Metaverse revolves around players interacting with and playing at each other's levels. The game allows creators to make money from their work and offers players the chance to gain money by gathering resources, rewards, and tokens. In addition, there is a grant-giving system called the Foundation for all creators. Though the Sandbox game is still in its open beta phase, it has already funded 15 game projects, and several more will follow soon.

In a nutshell, Sandbox's Metaverse offers interesting developments for players and investors alike. Potential profits are completely based on supply and demand. This increases the risk considerably, but that does not mean that there are no opportunities.

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Currently, cryptocurrencies and the metaverse are among the new crypto coins with potential. Sandbox combines them both. It is one of the first play-to-earn game that will show off the potential of a virtual world. 

Over the past year, Sandbox (SAND) has soared in value to as much as 11,000%. The increased interest in the metaverse may further increase the valuation, but this is highly uncertain. Although the game faces competition from Enjin and Decentraland, it already has a number of high-profile partners, including Atari, Adidas, and Snoop Dogg. 

The Sand Token is an ERC-20 utility token that feeds the Sandbox Metaverse. As an investor, you can invest in SAND as a crypto currency. In this case, you are speculating on future price increases thanks to an increase in demand. Demand increases if multiple investors buy up the coin and/or many new players join (using the coin within the game).  

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A second way to invest in Sandbox is to buy up land. This is the principle of real estate metaverse, where you buy virtual real estate just like in Decentraland. In this case, you speculate on increasing demand for certain pieces of land. This works the same as with real estate investing. Some locations are popular and have a high price. Other locations have a low price and may be worth more in the future.   

A third reason to invest in Sandbox Metaverse is because of the various promising projects in the Sandbox. Such projects may increase demand over time, which may drive up the price. 

Please note that we do not recommend investing in Sandbox. It is speculation with a high degree of risk. It can be profitable, but can also lead to huge losses. If we can give one tip, it is to learn how to invest successfully. Don't take unnecessary risks. Make money work for you with long-term returns.

There are a number of reasons why you might not want to invest in Sandbox (coins). It is crucial to understand that the Sandbox Metaverse is completely dependent on its gaming community. The growth of the token depends on the success of the Sandbox. The price of SAND is likely to plummet over time if the game fails to attract users and investors. In this perspective, you can compare Sandbox to a growth stock: if future growth weakens, then the future value of SAND is also worth less. With growth stocks, however, we can perform analysis based on intrinsic value (and the like). With the crypto currency SAND, this is not possible, so it is uncertain what the true value of this currency is. And that means risk.

Sandbox Coin, like most altcoins, is an extremely risky investment. However, investing in Sand is particularly risky because its use is limited to the game. Moreover, only those who participate in the game can use it. Thus, the audience is limited. 

Moreover, there is no intrinsic value in Sandbox coins. The money you put into Sandbox coin does not represent "real" services or products. Thus, you cannot use it to buy things outside the Sandbox metaverse. 

Another concern regarding Sand is the potential for future price appreciation. The value of SAND has already risen over >11.000%. Such a bizarre increase leads to increased risk. For example, 2022 is not a good year for the metaverse token, as the price has fallen by more than 50%. In practice, the higher the price, the greater the downside potential. And since the intrinsic value cannot be calculated, this means significantly high risk. 

According to critics, much of the hype surrounding all things crypto can be attributed to marketing buzzwords rather than real reality. It's usually not wise to get in during hype. 

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Investing in Sandbox can be done in two ways. The most accessible way is by buying SAND. This is the crypto currency (token). You can trade the coin in the short term, or invest for a long term. Buying is done through crypto brokers. 

A second way is to buy land within The Sandbox. As indicated, this is a type of virtual real estate. Usually, this type of investment is a long-term affair. 

Alternatively, you can register as a Creator or Artist for The Sandbox. That might still be the best option to investing in Sandbox. Despite the incredible hype surrounding Metaverses, there is still room for growth in the maker economy. Through the Creator Fund and GameMaker Fund, The Sandbox offers financial incentives for both artists and game developers to get involved.

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The Sandbox seems to be one of the most successful Metaverse project with active collaborations and periodic events. It is an interesting game for the Metaverse. Gamers apparently have a need for it as well. Its popularity has grown significantly in recent years. 

However, our Sandbox review shows that it has immense risks for investors. In fact, we strongly advise against investing in Sandbox. Are we missing out on potential returns because of this? Perhaps we are. Buying land pieces within this metaverse can be lucrative. Also, the crypto currency may increase in value, if we buy in a large valley. However, this is all uncertain. 

We are investors. Preferably for the long term. As an investor, you want some degree of certainty. You want to take risk in the expectation of making a profit. To be honest, we have no idea what SAND's intrinsic value is. Let alone what the value of its "land" is. If demand (from players or investors) declines, then it collapses. But of course this applies to all types of investments.

About the author
Happy Investors is all about your long-term growth, both financially and in personal development. We write about long-term investing: stocks, real estate, crypto, and alternative investments. Grow your life. Become a Happy Investor!
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