When disney (SAY -2.83%) introduced that polygon (MATIC 5.20%) was going to be part of its Disney Accelerator program, it appeared like an odd combine. Disney is an old-world media firm, and Polygon is without doubt one of the largest cryptocurrencies, by market cap, in the present day.
The match could appear unusual, however upon additional evaluation, it reveals rather a lot about how each firms see the long run.
Disney may be very taken with superior know-how, Web3, and the metaverse
The objective for Disney is straightforward: It desires to make connections with, and investments in, younger firms which can be constructing the way forward for know-how. The metaverse, augmented actuality, and digital actuality have been a spotlight for a while.
Earlier companions in Disney Accelerator embody Epic Video games, The Void (VR expertise enterprise), Littlstar (360 movies), and extra.
Disney has a protracted historical past of utilizing superior know-how in motion pictures and rides, and the Accelerator program is a good way to remain on the leading edge and perhaps get some upside in an funding spherical as nicely. Polygon appears to suit that mould.
Polygon may be very taken with being taken severely
Polygon could also be a well known cryptocurrency, however as a blockchain, it is not getting a number of traction. It is what’s often called a Layer 2 blockchain, working on prime of Ethereum‘s Layer 1. The thought is to scale Ethereum and decrease prices, however the trade-off is that transactions are extraordinarily sluggish, and builders have not moved to the blockchain in a short time.
There are about 225,000 energetic wallets on Polygon in comparison with 800,000 on Solana (FLOOR 1.08%), one other chain that is constructed for scale. A overwhelming majority of transactions on Polygon are transfers of stablecoins as a result of it is a cheaper approach to transfer funds round than working on Ethereum’s Layer 1 community. There aren’t main metaverse or NFT investments on Polygon, and the market appears to be shifting to Solana.
So, how does a blockchain like Polygon get traction with metaverses and different inventive initiatives? Why not be part of Disney’s Accelerator? This system offers Polygon the ear of Disney executives and probably creatives within the trade, so it is value being concerned.
Who’s helped by Disney’s crypto exploration?
It is simple to blow off Disney’s Accelerator program and Polygon’s involvement as a low-impact venture. However I preserve going again to Disney’s early utilization of digital actuality and animation instruments, with the last word objective of constructing rides and flicks higher. To Disney, know-how has been a method to an finish, not the top itself.
Will we see Disney start to check the way it can use crypto in theme parks or a metaverse that we all know it is constructing? Disney might promote tickets or entry to rides as non-fungible tokens at theme parks on the Polygon community. It might additionally promote digital belongings to folks within the metaverse with NFTs as nicely.
As a Disney investor and a believer within the disruption of the blockchain, I’m inspired that Disney is exploring crypto. We do not know the place it would lead, however typically exploring one thing is a invaluable train.
However I additionally would not be shocked to see some experiments in crypto earlier than too lengthy. Disney desires to guide within the metaverse and media creativity, and this might be a low-risk approach to get there earlier than the competitors.
Travis Hoium has positions in Ethereum, Solana, and Walt Disney. The Motley Idiot has positions in and recommends Ethereum, Polygon, Solana, and Walt Disney. The Motley Idiot recommends the next choices: lengthy January 2024 $145 calls on Walt Disney and brief January 2024 $155 calls on Walt Disney. The Motley Idiot has a disclosure policy.