The Sandbox, a blockchain-based metaverse platform, is undergoing a significant restructuring, laying off over 50% of its approximately 250 employees and closing offices in Argentina, Uruguay, South Korea, Thailand, Turkey, and Lyon, France, with further cuts expected in Paris.
Co-founders Arthur Madrid and Sébastien Borget have stepped down from operational roles, with Madrid transitioning to non-executive chairman and Borget becoming a global ambassador. Animoca Brands, The Sandbox’s majority shareholder, has assumed direct control, with its CEO Robby Yung taking over as The Sandbox’s CEO. The restructuring is driven by low user engagement, with only a few hundred daily active users, many reportedly bots, despite $300 million in funding.
The platform is shifting focus from its metaverse roots to broader Web3 applications, including a memecoin launchpad on the Base blockchain. The SAND token, trading at around $0.28, has dropped 95-97% from its all-time high, reflecting market challenges.
Gemini Launches SOL and ETH Staking in the UK
Gemini, the cryptocurrency exchange led by Tyler and Cameron Winklevoss, has launched staking services for Ethereum (ETH) and Solana (SOL) in the UK, allowing users to stake any amount of these assets to earn rewards.
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Previously, UK users needed a minimum of 32 ETH through Gemini’s Staking Pro service, but this barrier has been removed, making staking more accessible. Solana offers up to 6% APR, while ETH provides a variable rate (reportedly around 2.61% in some sources). The service, integrated into Gemini’s app and web platform, emphasizes simplicity, no minimum requirements, and institutional-grade security.
This launch follows Gemini’s opening of its first permanent UK office in London and aligns with its European expansion, including a recent MiCA license from Malta. The move reflects growing competition among exchanges to offer accessible staking for passive income.
The Sandbox’s layoffs and leadership overhaul reflect broader struggles in the metaverse and Web3 gaming space. With low daily active users (reportedly a few hundred, many potentially bots), the platform’s pivot from its metaverse roots to broader Web3 applications, such as a memec breadcrumbs memecoin launchpad, signals a struggle to maintain relevance.
This suggests that the metaverse’s promise of immersive virtual worlds has not yet resonated widely with users, challenging the sector’s growth narrative. The SAND token’s 95-97% drop from its peak highlights the financial pressures facing metaverse projects.
The Sandbox’s $300 million in funding has not translated into sustainable user growth, indicating a potential overvaluation of metaverse assets during the 2021-2022 crypto boom. This could lead to a broader market correction for similar projects, with investors becoming more cautious about Web3 ventures.
Cutting over 50% of its 250-strong workforce, including key staff in multiple global offices, could damage morale and The Sandbox’s ability to innovate. The loss of institutional knowledge from co-founders Arthur Madrid and Sébastien Borget stepping down from operational roles may further hinder strategic execution.
Animoca Brands’ takeover, with CEO Robby Yung assuming leadership, suggests a shift toward tighter integration with Animoca’s broader Web3 portfolio. While this could streamline operations, it risks alienating The Sandbox’s community and developers if the new direction diverges from its original vision.
The Sandbox’s move toward a memecoin launchpad on the Base blockchain indicates a strategic pivot away from metaverse gaming toward more speculative Web3 products. This could diversify revenue streams but risks further diluting its brand identity if not executed well.
The restructuring under Animoca’s control could be seen as a pragmatic move to stabilize the company, but the significant layoffs and closure of global offices may project an image of instability, potentially deterring partnerships and users.
Implications of Gemini’s ETH and SOL Staking Launch in the UK
By removing the 32 ETH minimum requirement (previously ~$80,000), Gemini’s staking service for ETH and SOL makes proof-of-stake (PoS) networks more accessible to retail investors. With Solana offering up to 6% APR and Ethereum a variable rate (around 2.61%), this move could attract a broader user base seeking passive income, boosting crypto adoption in the UK.
The no-minimum staking model and user-friendly interface position Gemini as a strong competitor against exchanges like Coinbase and Kraken, which also offer staking. This could drive market share growth, especially among new crypto users looking for low-barrier entry points.
The launch, coupled with Gemini’s new London office and MiCA license from Malta, signals a strategic push to capture the UK and European markets. The UK’s relatively clear regulatory stance on staking compared to other jurisdictions provides a favorable environment for Gemini’s expansion, potentially setting a precedent for other exchanges.
Gemini’s ability to navigate past regulatory challenges (e.g., a $5 million CFTC settlement in 2025 and dropped SEC charges in 2023) suggests a robust compliance framework, enhancing its credibility among institutional and retail investors. This could attract more conservative investors to its platform.
With traditional UK savings accounts offering low returns, Gemini’s staking service provides an alternative for retail investors to earn yields on crypto holdings. This could drive demand for ETH and SOL, potentially stabilizing or increasing their market prices. Gemini’s emphasis on institutional-grade security and daily reward tracking enhances user trust, critical in a market wary of crypto scams.
However, the variable ETH staking rates and potential slashing risks (though mitigated by Gemini’s reimbursement policy) require users to stay informed about network dynamics. The staking launch intensifies competition among exchanges offering high-yield, accessible staking services.
Platforms like Binance and Kraken may respond with similar no-minimum offerings, potentially leading to a race for better yields and lower fees. Gemini’s staking service, alongside its XRP Edition credit card and RLUSD stablecoin integration, reflects a trend toward diversified crypto products that bridge traditional finance and DeFi.
Gemini’s financials show a $282.5 million net loss in H1 2025, despite its diversified offerings. Continued crypto market volatility could impact staking rewards and user participation, especially for ETH’s variable rates. While the UK’s regulatory environment is favorable, potential shifts in EU or global crypto regulations could affect Gemini’s European expansion, particularly post-MiCA compliance.