This sub-$1 crypto business just partnered with Disney
As part of a larger strategic push to reinvent itself for the future of entertainment, The Walt Disney Co. (HAZE -1.40%) recently accepted Polygon (MATIC 5.97%) into its highly prestigious Accelerator program for 2022. Polygon – already one of the top Layer 2 blockchain networks worldwide – will be joined by five other companies to explore a full range of non-fungible tokens (NFTs) , augmented reality (AR), virtual reality (VR) and artificial intelligence (AI) experiences. This new partnership could be a big long-term win for Polygon, so it’s perhaps no surprise that MATIC has been trending higher on recent news.
A big win for Polygon NFTs
The biggest upside for Polygon at the start of the new partnership will likely come from Walt Disney’s growing push into the NFT world. Walt Disney has been under increasing pressure from shareholders and Wall Street not to do more in the space. So they launched a line of Spider-Man NFTs in 2021 and followed it up with a slew of NFT collections in 2022, including NFTs related to Mickey Mouse, Star Wars, and “Disney villains.”
Needless to say, these NFT collections were easy for Disney and a perfect way to leverage its considerable intellectual property. Now imagine if Polygon becomes the blockchain of choice for Disney every time it decides to release a new NFT collection featuring a well-known character.
Polygon and online games
Looking a bit longer term, another easy win for Polygon would be getting involved in the blockchain gaming space. Instead of coming up with brand new titles, Polygon developers can simply leverage existing Walt Disney titles.
To get an idea of what this might look like, consider Polygon’s MetalCore, which describes itself as “an NFT-based open-world mechanized combat game.” Polygon highlighted this next-gen NFT gaming experience at the big NFT.NYC 2022 conference in June, and it could hint at what might be possible with a wider Disney collaboration. Just look at the MetalCore trailer featuring spaceships, alien warriors, and otherworldly experiences, and you can immediately see how this same type of gameplay could be applied to a major Disney franchise like Star Wars.
Augmented reality, AI and the metaverse
Things get really exciting when you consider the potential transition of Disney’s physical attractions from the real world as theme parks. Yes, we are talking about Disney World and Disneyland here. The future of entertainment at these properties will likely include some form of AR or VR experience. Is it enough to see a live person dressed as your favorite Disney character walking around a theme park? Or would you rather interact in VR or AR with that character as part of a more immersive experience?
That may be why Disney included various AR, VR, and AI startups to partner with Polygon in the Accelerator program. There is Obsess, for example, which builds immersive 3D stores in the metaverse. And there’s Inworld, which uses AI to create the “brains” of virtual characters for immersive experiences. If any of these experiences end up living on the MATIC blockchain, it will also be a huge win for Polygon.
Disney and Polygon, reshaping the future of entertainment
Going forward, it will be interesting to see how companies continue to experiment with the mix of crypto and entertainment in ways we may never have imagined. Suddenly, media publications suggest that emerging NFT brands may take on established companies like Disney as entertainment giants or that a Bored Ape will replace the lovable Mickey Mouse you grew up with as an entertainment icon.
So if MATIC ends up being Disney’s go-to blockchain, watch out. The future of entertainment could be powered by a cryptocurrency that trades for less than a dollar right now. If you’re lucky enough, your next big trip to the Magic Kingdom might just be fueled by future winnings in your MATIC inventory.
Dominic Basulto has positions at Polygon. The Motley Fool has positions in and recommends Polygon and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.