The native token of The Sandbox, SAND, rallied from an eight-month low on Thursday after the metaverse announced a partnership with Lionsgate Studios.
SAND jumped 20% to $0.9715 after the news, although it eventually pared its gains to trade at $0.8647. The news allowed SAND to break a seven-day losing streak amid crypto market weakness.
Lionsgate is one of the largest independent studios in the United States, and owns brands such as Hellboy, Rambo, and The Expendables – which will now be featured in The Sandbox. The metaverse will now create a dedicated area for Lionsgate media properties called “city of action“.
The partnership with Lionsgate allows to increase the number of licenses in the Sandbox.
As part of the partnership, Lionsgate’s “Action City” will feature licensed brands owned by the studio, as well as its longtime collaborator, Millennium Films.
According to The Sandbox, this partnership makes Lionsgate the first major Hollywood studio to enter the metaverse. The virtual platform features content from Adidas, Snoop Dogg, The Smurfs, and also sold land to major corporations such as HSBC.
No financial details of the deal with Lionsgate have been revealed. The Sandbox, which is owned by blockchain gaming giant Animoca Brands, was looking to raise capital at a valuation of over $4 billion.
Can Interest in Metaverses Surpass a Crypto Crash?
The Sandbox and its pairs have seen a drastic drop in token prices this year as crypto markets crashed. But their backing by an established metaverse, especially for The Sandbox and its Decentraland counterpart, may give them better prospects than their smaller counterparts.
In times of rising inflation and high interest rates, investors are generally interested in projects that enable a tangible product or service, as The Sandbox and most of its metaverse peers can attest to.
This may give SAND some resilience against the ongoing crisis in the crypto market, even though the token lost around 85% of its value in 2022.