Polygon crypto jumps on Disney selection for accelerator programme

POLYGON'S MATIC token jumped after Walt Disney chose it for a business-development accelerator programme.

MATIC was 1.3 per cent higher on Friday (Jul 15) morning in Asia after surging 21 per cent on Thursday in the wake of Disney's announcement that Polygon was one of 6 companies selected.

"The implications for Polygon are significant, given that it was the only blockchain provider chosen," Walter Teng, digital-asset strategy associate at Fundstrat, wrote in a note Thursday. Since Disney "hasn't invested or built an in-house crypto solution, the accelerator marks its foray into the digital-asset space".

The rally in MATIC is a rare bit of good news for cryptocurrencies, which have struggled in recent months amid Federal Reserve rate hikes to quell inflation, a souring of risk appetite and high-profile meltdowns involving the Terra/Luna ecosystem and hedge fund Three Arrows Capital.

MATIC itself, which was co-founded by Sandeep Nailwal and counts billionaire Mark Cuban as a mentor, is about 75 per cent below its record high in December. But such announcements from a blue-chip company like Disney can raise expectations for greater potential backing and adoption.

"As crypto onboards its next 100 million users, it is perhaps apt to consider partnerships and mainstream exposure," Teng said. BLOOMBERG