For Sébastien Borget, what started as a passion for gaming has flourished into co-founding The Sandbox, now one of the most recognized metaverse platforms in the world with more than 6.3 million user accounts with connected crypto wallets.

Its recent Alpha Season 4 curated event attracted more than 580,000 unique players in just six weeks, generating 1.1 million blockchain transactions and 350,000 NFT sales, while its creator economy continues to thrive, with over 1,500 user-generated games published on the platform.

As a serial entrepreneur with a background in telecommunications, Borget has helped The Sandbox secure over 400 major brand partnerships and establish its native token, SAND, as the second-largest gaming token by market cap, according to CoinMarketCap.

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Here, Borget, who will be a speaker at Consensus Hong Kong, discusses Asia’s dominance in blockchain gaming, The Sandbox’s approach to cultural localization and AI’s potential impact on the gaming industry.

This interview has been condensed and lightly edited for clarity.

What led you to start The Sandbox?

I’ve always been a tech geek and an early adopter of gaming hardware. My journey started with a Super Nintendo, and since then, I’ve owned nearly every console on launch day. That childhood passion fueled my dream of one day creating my own video games.

My co-founder, Arthur Madrid, and I started working together in 2007, founding three companies — two of which we successfully exited. In 2011, we shifted to mobile gaming, launching The Sandbox as a 2D world-building game. It gained 40 million downloads and 70 million player creations, but we faced challenges in retaining game creators. App Store and Google Play limitations prevented us from sharing revenue, leading creators to leave over time.

By 2017-2018, I was experimenting with Bitcoin mining and blockchain technology. When CryptoKitties emerged, I saw NFTs as a game-changing solution — allowing players to truly own and monetize their creations. That’s when we decided to rebuild The Sandbox on the blockchain, making avatars, virtual land and assets into NFTs and launching our own token-driven economy.

How have you handled challenges like bear markets and shifting user expectations?

We’ve built through every market cycle. When we started in 2018, it was a bear market — fundraising was incredibly tough. We pitched over 100 investors before securing seed funding from Animoca Brands, True Global Ventures, Square Enix ( SQNXF ) and HashKey — all based in Asia. That was our first indicator that Asia had a stronger appetite for blockchain gaming than the West.

Our Series B round in 2021 was led by SoftBank from Japan, reinforcing that trend. While 2022-24 were bearish years, we focused on expanding in Asia, where we saw continued interest. Over the past two years, we’ve grown small, agile teams in India, Singapore, Vietnam, Thailand, Korea, Japan, Hong Kong, Turkey and even Saudi Arabia. Today, Asia accounts for 40% of our audience, partnerships and revenue, making it a key pillar of our growth strategy.

How is The Sandbox adapting to markets like Japan, Korea and Southeast Asia, which each have their own unique user base?

Unlike some Western companies that prioritize the U.S. first, we built The Sandbox as a “metaverse of culture,” focusing on localization from the start. Instead of launching with a large centralized team, we embed small, regionally-focused teams in each country. This approach helped us to form strategic partnerships across key Asian markets, collaborating with Bollywood studios and music labels in India, securing high-profile projects in Korea such as Solo Leveling — one of the top webtoons — and even partnering with South Korea’s Incheon City. In Japan, a major milestone was our collaboration with Attack on Titan, a globally recognized franchise.

Localization, for us, extends far beyond translation — it’s about integrating culturally significant brands that truly resonate with local audiences. This strategy has been instrumental in driving strong engagement across Asia.

How is The Sandbox using AI to engage creators and gamers?

AI is still in its early adoption phase in gaming, but we’re already exploring its potential in several key areas. For chat moderation, we’re leveraging GGWP AI to ensure a safe and well-moderated player experience. In motion capture, our partnership with Kinetix AI allows us to create realistic avatar animations directly from video captures. We’re also experimenting with generative AI for game creation, particularly in AI-powered level design based on text prompts, though full integration is still in progress.

Additionally, we’re considering AI-driven non-player characters (NPCs) and virtual agents capable of engaging in intelligent conversations and strategizing in PvP battles. Other platforms like Minecraft and Roblox ( RBLX ) have already begun experimenting with AI-driven virtual agents, and we’re closely monitoring their progress to determine if similar innovations would be a good fit for The Sandbox.

How do you see monetary incentives and monetization models changing within The Sandbox?

Web3 monetization is still evolving, but our LiveOps game management system has emerged as a proven model, with regular in-game events, quests and mission-based rewards driving engagement. In Q4 2024, we launched Season 4, which became our strongest season yet despite the bear market. Building on this momentum, we plan to scale up in 2025 by expanding from one major season per year to four seasonal events.

However, the broader Web3 gaming landscape remains uncertain. Telegram-based games are gaining traction, though their monetization models are still untested. Meanwhile, high-quality Web3 titles like Shardbound, Shrapnel and MetalCore are working to replicate traditional AAA gaming revenue models, signaling a shift toward more sustainable economic frameworks in the space.

With Asia driving stablecoin adoption, do you see The Sandbox integrating stablecoins into its ecosystem?

Stablecoins are key for business and enterprise adoption, but they’re still highly centralized. We’re seeing emerging regional stablecoins, such as the Hong Kong dollar-pegged stablecoin, alongside USDC and USDT. The broader question is whether the U.S. dollar will remain the dominant reserve currency in Web3, or if Asian alternatives like the Chinese yuan or HKD will rise. This could impact international trade and crypto settlements.

What’s the most underappreciated aspect about the gaming ecosystem in Asian markets?

I think what is very undervalued and underappreciated is how much technology is ingrained into the culture and the daily habits of people in Korea, Japan, China and other Asian markets. For example, you look at those countries and you see older generations already invested in stocks, real estate, digital payments and transportation systems. There’s no resistance to adopting new technology, unlike in Western countries.

Another thing that’s really underappreciated is how storytelling, characterization and branding matter in gaming and Web3. Look at memecoins like Shiba Inu or Dogecoin — they resonate because they align with Asian branding strategies where mascots and storytelling are a big deal. That’s why gamification works so well here.

And even though Web3 gaming levels the playing field — removing traditional regional spending disparities in gaming — adoption still requires local teams, local manpower and cultural adaptation. You need people on the ground because local content and engagement still drive growth in these markets.

What are you most excited to talk about on-stage in Hong Kong?

I’m interested in the evolution of AI-powered virtual agents, moving beyond static NPCs to fully interactive, AI-driven characters that enhance immersion in gaming. Another key development is the rise of app chains, with projects like Abstrakt and Pudgy Penguins pioneering new models that are reshaping Web3 gaming infrastructure.

At the same time, the global crypto landscape is undergoing a major shift, especially with Hong Kong positioning itself as a leading crypto hub. With a new U.S. presidential administration, the question remains: how will shifting policies impact the broader Web3 ecosystem? As Hong Kong, Dubai, Singapore and even France compete to become the world’s top crypto hub, it’ll be fascinating to see which jurisdiction takes the lead in shaping the future of digital assets.