Sandbox’s native token, SAND, rose from an eight -month low on Thursday after the metaverse company announced a partnership with Lionsgate Studios.
SAND jumped 20% to $ 0.9715 after the announcement, though it didn’t last long with market players taking profits until it traded at the $ 0.87 trading level at the time of writing. The news has made SAND manage to break a seven-day consecutive loss amid a slump in the broader crypto market.
Lionsgate is one of the largest independent studios in the United States, and owns the rights to films such as Hellboy, Rambo, and The Expendables, which are now set to feature in The Sandbox.
The SAND metaverse company will provide a dedicated area for Lionsgate dubbed the "Action City." In the partnership, Lionsgate's "Action City" will feature licensed ownership of theirs. The Sandbox claims that the partnership makes Lionsgate the first major Hollywood studio to enter their metaverse world.
The metaverse world developed by SAND has previously featured Adidas, Snoop Dogg, The Smurfs, and has even sold land to major firms like HSBC. So far no financial details of the Lionsgate deal have been disclosed.
On the other hand, Sandbox, owned by blockchain gaming giant Animoca Brands, is reportedly looking for funds to raise more than $ 4 billion in capital.
The performance of Sandbox and some of its competitors so far has shown poor performance with a drastic drop in the price of their cryptocurrencies as the cryptocurrency market is mass liquidated. However, many are still optimistic about the future of The Sandbox and Decentraland.
During rising inflation and high interest rates, investors typically focus on quality projects. This may give SAND some resilience to the ongoing recession in the crypto market. Nevertheless, the cryptocurrency has lost about 85% of its value by 2022.
