Animoca Brands shifts focus away from US markets

Animoca Brands, the developer of The Sandbox metaverse platform, has announced that it will be shifting its focus away from the US and onto other markets such as Hong Kong and Japan due to the recent labeling of its crypto token, Sand, as an unregistered security by the SEC. The SEC lawsuit against popular exchanges Binance and CoinBase named Sand and over a dozen other cryptos as unregistered securities. Yat Siu, the co-founder and chairman of Animoca Brands, stated that the SEC’s ruling should not impact the company in broader markets outside the US.

The SEC’s complaint alleges Sand was used to fundraise for The Sandbox protocol, making it viewable as an investment by buyers, leading to Sand being called a security crypto token. This claim could put the company and its collaborations with several major global brands such as The Walking Dead and Square Enix at risk.

Emphasis on other markets

Mr. Siu explained, “Animoca Brands is not focused on a single territory but operates globally. We have started to take steps to place more emphasis on other markets for reasons beyond just this particular SEC issue. The reason is due to broader geopolitical considerations and the increasingly blockchain-hostile attitude of the US.”

Animoca Brands has been listed as one of the top 50 mobile game makers of 2022.

Armstrong leads the charge

Brian Armstrong, the CEO of CoinBase, stated that he would not delist Sand or any other token named in the lawsuit. The underlying issue of whether a crypto asset can be considered a security is one that has plagued the blockchain industry. The use of cryptocurrency, NFTs, and blockchain has been met with widespread confusion, and the industry has been criticized for its lack of clarity on its function. Regulators, such as the US SEC, have been slow to impose restrictions on the tech industry, leading to several lawsuits similar to this one over the years.

Final thoughts

While Animoca Brands has gone on record claiming it does not agree with the SEC’s ruling, The Sandbox’s COO Sebastien Borget stated that the platform has no plans to change its business “on a day-to-day basis.” The company’s pivot from the US market seems rather timely given the events surrounding the SEC’s lawsuit against Binance and CoinBase. Although its future is uncertain, it appears that Animoca Brands retains its position as a key player in the blockchain and mobile gaming industry.