In 2021, the layer of #TheSandBox recorded staggering figures; both for its investors and for the team behind the project. That's why our analysts decided to get inside the company's accounts to actually understand how the " #metaverse " situation is evolving in practical terms.
ARK INVESTMENT ESTIMATES
Around the time of Mark Zuckerberg's much-discussed announcement of Facebook's transformation into #META, the renowned Cathie Wood, CIO and CEO of #ARK Investment released a report within which her analysts' estimates of revenue from the "metaverse" are laid out with a forecast through 2025.
As you can see from our representation below, revenue related to advertising from social media will represent the main revenue. Nothing different than the revenues from classic social networks. The same ex. #Facebook in the financial statements shows a prevalence of ADS categorized revenue. What is striking is the fact that, with the metaverse, revenue from social media ads should increase. Another consistent and above all "new" revenue is the one coming from "live entertainment". Will streaming become an active part of our lives? Or is it already?
The thing that immediately jumps to the eye is the insignificant impact of #gaming. But that's natural; it's certainly not decentralized gaming that brings revenue. That doesn't mean, however, that in many metaverse, it can't be a central aspect. The fact remains that the audience interested in gaming is monetizable through ADS and live entertainment.
For this reason we consider #TheSandBox, even if gaming oriented, a very solid metaverse.
GAMING ON THESANDBOX
As you may know, TheSandBox's core business is to create a layer of the #gaming-oriented metaverse. The novelty related to this layer are the tokenized gaming features. The ecosystem of TheSandBox offers to the general public, in the form of #NFTs, a series of assets of a particular nature:
#ASSETS: 3D images created directly by players
#GEMS: particular resources whose value is due to the BURN of SAND tokens
#CATALYST: Assets created directly by the BURN of SAND tokens
#GAMES: The set of a combo of assets combined to create an interactive experience
#ESTATE: A combination of individual LANDs to create a kind of playground
#INGAMETOKEN: Special assets created by combining multiple NFTs.
(Catalyst + GEMS + ASSETS = IN GAME TOKEN)
THESANDBOX EARNINGS
2021 was a very profitable year for anyone interacting with TheSandBox's layer.
Q4 stands without a shadow of a doubt as the best quarter in the history of this #layer.
We can see that, the main revenue comes basically from the commissions generated by buying and selling land and their NFTs. We don't talk about gaming, advertising or live entertainment but among the key metrics there is the buying and selling of NFTs.
It seems therefore legitimate to wonder if the decentralized metaverse is or is not a speculation of the moment or if it is only the preamble of what to all intents and purposes will be a new way to live life.
This is because, if the main business of TheSandBox is to earn only from the commissions generated by the #marketplace, what value would the tokens object of the sale?
The most faithful to the project point out that in reality the revenue from the commissions of the Marketplace are attributable to the revenue from social media ads. This is because, buying a land means having a certain visibility and reputation in the crypto world, especially the one related to NFTs. As soon as you access the map of TheSandBox, you can't avoid noticing the plots of #ATARI, #Binance, #Socios, #BoredApe etc etc. Having a plot on TheSandBox not only attributes a certain Status Quo but indirectly advertises your brand.
Fortunately, TheSandBox presents itself as a much larger reality.
It will probably only be a matter of time before we can taste the flavor of social alterative.
THE MOST DESIRABLE LANDS
The average price of LANDs in TheSandbox appreciated from $1,308 at the end of the third quarter to an average price of $11,364 by the end of the fourth quarter.
The #Plots in The Sandbox are separated into 1x1, 3x3, 6x6, 12x12 and 24x24 parcels. The heat map below shows the charts that saw the highest #volume of aggregate trades in the secondary market.
This map is very important for virtual land traders as it allows the investor to understand which are the most liquid and interesting zones. It is natural that in those areas, traders will also be willing to pay a price higher than the floor price, on the other hand in the areas with less trading volume, the coveted prices will be those in the vicinity of the floor price.
The dark blue plots are the least traded. Red plots are the most traded ones. So, dear traders, beware: not all plots have historically been easy to liquidate.
NEWS THESANDBOX
Despite the small taste that the team of TheSandBox has given by leaving the Alpha version open for a few days, for the moment a real game experience is not yet available.
Within the next two quarters, the creators will release a variety of game experiences (#TheWalkingDead) and digital events such as concerts by the most famous LAND owners (#SnoopDog,#Deadmau5).
CONCLUSION
We believe that TheSandBox is only at the beginning of its journey. This is evidenced by the fact that, the first real game experiences will be released in the coming months.
What doesn't go down too well with our analysts is the fact that TheSandBox has planned a continuous and gradual release of LAND throughout 2022. We know full well that if Supply increases, of course, the price decreases.
TheSandBox will soon open its #DAO and give the opportunity to land owners to propose changes to the project.
From our side there will certainly be a call for better management of land distribution.
