The Sandbox — Is it a good investment?
With the advent of blockchain, many applications have sprouted up with numerous possible niches — currency, accounting, real estate, government policies, etc. An application of blockchain that has recently got traction is the Sandbox gaming ecosystem.
What is Sandbox?
It’s a virtual blockchain-based gaming world supported by Ethereum blockchain technology. This makes the Sandbox a decentralized virtual platform. It’s a play-to-earn game that is a subsidiary of digital entertainment and blockchain development company Animoca Brands. The stakeholders make the Sandbox a community-driven platform where the participants monetize voxel assets and gaming experiences on the blockchain.
The Ethereum blockchain-based Sandbox system uses SAND tokens. These tokens work like real-world currency to gaming activities such as,
· buying and selling of digital lands and other assets
· purchasing gaming items
· purchasing characters
· and…
Does that make the Sandbox a good investment?
It is a great investment considering how steadily its value soared since January 2021, over 10,000%!
Moreover, the concept of virtual assets has become a new model of investment for the investors who have witnessed their stakes rising exponentially in the last few months.
With the announcement of technology giant Facebook that it would change its name to “Meta” and start building a metaverse, the likelihood of the rising of this new system seems imminent now. However, its success would also depend on the competition the Sandbox would face.
Competition to the Sandbox
After Facebook’s announcement earlier this year, the value of other tokens, like SAND, skyrocketed. Meta (Facebook) has assured of launching the same that would supposedly become the greatest competition to the Sandbox. But for now, there’s no such rival from Meta.
The existing rival to the Sandbox, for now, is the Decentraland. Just like the Sandbox, it is a metaverse game built around a cryptocurrency and has an NFT-based (non-fungible token-based) economy. But compared to advanced Sandbox, it is a little more basic.
With quick money there comes associated risks. It is risky, just like other blockchain-based media. It’s highly volatile. If the game fails to attract lots and lots of users and investors, the value of SAND may plummet which may lead to huge losses.
A pragmatic approach would, thereby, be to study the scope of the technology and stay updated with it. It seems more probable to turn out to be a great investment while at the same time it’s essential to keep track of the progress of other similar virtual ecosystems.