Sandbox's native SAND token rose from eight-month lows on Thursday after the metaverse announced a partnership with Lionsgate Studios.
The SAND jumped as much as 20% to $0,9715 after the announcement, though it pared some gains to trade at $0,8647. The news helped SAND break a seven-day losing streak amid weakness in the broader cryptocurrency market. Lionsgate is one of the largest independent studios in the United States and owns properties like Hellboy, Rambo and The Expendables – which will now be featured in The Sandbox. The metaverse will now set up an area dedicated to Lionsgate's media properties, called "City of Action".
Under the partnership, Lionsgate's "Action City" will feature popular licensed properties owned by the studio, as well as its longtime collaborator Millennium Films. Sandbox claims the partnership makes Lionsgate the first major Hollywood studio to enter the metaverse. But it's far from the metaverse's first prolific partnership. The virtual platform features content from Adidas, Snoop Dogg, The Smurfs and has also sold land to big companies like HSBC. No financial details of the Lionsgate contract were revealed. Sandbox, owned by blockchain gaming giant Animoca Brands, is looking to raise capital with a valuation of over $4 billion.
The Sandbox and its peers saw a drastic decline in the prices of Tokens this year as the cryptocurrency markets plummet. But their support for an established metaverse, especially for The Sandbox and peer Decentraland, may give them better prospects than their smaller peers. In times of rising inflation and high interest rates, investors often look to projects with a tangible product or service – something the Sandbox and most of its metaverse peers can attest to. This could give SAND some resilience against ongoing problems in the cryptocurrency market. Still, the token lost around 85% of its value in 2022.
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