The Sandbox news

Episode 5 of Layer One, hosted by The Block’s Kelvin Sparks and Hypha founder Steven Gates, features Ava Labs General Counsel Lee Schneider and Plume General Counsel Salomon Benaei discussing how a new Senate bill could solidify crypto’s legal foundation, moving it from a “sand” to a “stone” footing. The panel covers key regulatory shifts, including token sales and legal structures, rights and disclosures for real‑world assets, buyer protections, pre‑IPO tokenized shares, governance token questions, the decentralization test debate, and how clarity will affect builders, traditional finance’s crypto play, and open versus closed networks.

Axie Infinity’s token jumped 89 % this week after a major tokenomics overhaul aimed at reviving its in‑game economy, while The Sandbox rose 15 %. The gains come amid a Bitcoin slide and global liquidity worries, but analysts say they stem from project‑specific news rather than a broader shift into gaming tokens. Some experts, like Bertie Wrench, view the rally as high‑risk speculation and capital rotation. Others, such as Illia Otychenko, argue the moves reflect localized catalysts from the recent restructuring. A lasting GameFi revival would require a deeper increase in token utility and user demand, which the sector still lacks.

GameFi tokens, down 75% in 2025, are showing early recovery signs in early 2026. On‑chain activity on Base and Sei chains, especially B3, indicates increased user engagement, while DappRadar shows rising active wallets for several Sei games. Analysts note that Axie Infinity (AXS) and The Sandbox (SAND) have led price gains, with AXS up ~117% and SAND ~27% in the past week, driven by sentiment shifts and tokenomic changes. Decentraland (MANA) lags in price but attracts whale accumulation, hinting at future upside. Technical patterns on all three tokens suggest bullish breakouts if key support levels hold. The sector’s resurgence appears driven by solid products, improved community sentiment, and early on‑chain activity rather than short‑term price hype.

Uzbekistan will introduce stablecoins in its payment system under a new regulatory sandbox effective Jan 1 2026. The law, overseen by the National Agency for Perspective Projects and the central bank, will allow pilot projects using distributed‑ledger technology and enable local entities to issue tokenized shares and bonds on licensed exchanges. The move follows earlier moves in Central Asia, with Kyrgyzstan issuing a som‑pegged stablecoin and Kazakhstan advancing a dual‑track approach that includes a CBDC and a state‑linked stablecoin. Uzbekistan’s central bank stresses strict control, citing impacts on monetary policy.

Former UK MP Lisa Cameron says the U.S. and U.K. are developing a joint sandbox to enable crypto passporting between the two markets. Alongside a Bank of England consultation on systemic stablecoins, U.S. and U.K. regulators have formed a transatlantic task force, but Cameron warns the U.K. risks missing the window if it does not act swiftly. Cameron urges the U.K. to accelerate regulation and support startups, citing the U.S. government's clear stance on frontier tech.

The Sandbox, the Ethereum‑based metaverse land game, is undergoing a major restructuring after Animoca Brands slashed more than half of its 250 staff and transferred its co‑founders Sébastien Borget and Arthur Madrid out of executive positions, with co‑founder roles now “ambassador” and “chairman.” Animoca’s CEO Robby Yung has taken over as the game’s new CEO a fortnight ago, and Animoca cited advances in generative AI as a driver for the layoffs, arguing that the technology can accelerate content and live‑ops while keeping teams lean. The overhaul will close several overseas offices, including those in Argentina, Uruguay, South Korea, Thailand and Turkey, leaving a formal presence in nine global locations. Despite heavy investment, the Sandbox’s player base has dwindled to only a few hundred daily active users, many of whom are bots, and the company is pivoting toward building crypto apps and a memecoin launchpad on Base. The SAND token has remained flat in the short term, down about 4% over the past month, while Animoca maintains that the platform’s core mission remains unchanged.

The Sandbox will cut more than half of its about 250 employees as Animoca Brands tightens control. Co‑founders Arthur Madrid and Sebastien Borget moved to strategic roles—Madrid becomes chairman and Borget global ambassador—while Animoca investment head Robby Yung is named CEO. The restructuring includes closing offices in Argentina, Uruguay, South Korea, Thailand, Turkey and Lyon, leaving nine global locations. Animoca says layoffs result from weak user engagement; daily active users have fallen to a few hundred, though the firm disputes bot‑activity claims. The SAND token’s market cap has dropped from $6.2 B in 2021 to about $700 M.

Thailand launched its Tourist Wallet to enable foreign-currency QR payments in baht, aiming to ease cross-border spending. The wallet supports cash, card top-ups, and overseas transfers, with monthly limits of 500,000 baht for merchants and 50,000 baht for small shops. A crypto-to-baht conversion feature remains suspended pending a regulatory sandbox review by the Securities and Exchange Commission, which is assessing KYC, anti-money-laundering measures and the safety of allowing tourists to convert crypto. The review is set to conclude by late August.

Thailand will launch the TouristDigiPay sandbox in Q4 2025, allowing foreign visitors to convert crypto to baht for spending. The 18‑month pilot, built with the SEC, Finance Ministry, AML Office and Tourism Ministry, bans direct crypto payments, pays merchants baht, and imposes KYC/AML on operators and e‑money providers. Safeguards such as monthly spending limits and no cash withdrawals will protect tourists and merchants. The project seeks to reverse 2025’s tourism decline—down 24 % from East Asia, 34 % from China—by making digital currencies more usable abroad. Deputy Prime Minister Pichai Chunhavajira will release full details on Monday, following earlier Phuket trials and ongoing regional experiments.

Thailand’s Securities and Exchange Commission announced a regulatory sandbox, “TouristDigiPay,” that will run for 18 months from Q4 2025 and let foreign tourists convert cryptocurrencies into Thai baht for use in the country. The initiative, co‑developed with the Ministry of Finance, the Anti‑Money Laundering Office and the Ministry of Tourism and Sports, prohibits direct crypto spending; merchants receive baht while KYC and AML requirements apply to all participants. Safeguards such as monthly spending limits and a ban on cash withdrawals will protect tourists and merchants. The program aims to revive Thailand’s tourism sector after a sharp decline in visitors, especially from China, and is part of a broader regulatory experiment that includes a trial in Phuket. Thailand’s SEC says full details will be released next week.