Disney might buy Bitstamp: why the corporations would need it
The Walt Disney Company has become seriously interested in the crypto industry. In addition to its blockchain project, the corporation keeps its eye on the Bitstamp crypto exchange, as well as on the Korean trading platform Korbit.
Although Disney is known as a motion pictures and cartoons producer, first of all, it is the world's largest financial conglomerate in the entertainment business. Its structure consists of 613 corporations, including ABC, Marvel, Lucasfilm, ESPN Inc and 20th Century Fox Film Corporation. Also, Disney is engaged in venture capital. It owns GoPro, Baynote, GameSalad, Photobucket, MediaBank and many other companies.
The total capitalization of The Walt Disney Company is estimated at $ 247 billion. For comparison, the total capitalization of the cryptocurrency market is $ 171 billion. Therefore, the possibility of two
crypto exchange under the wing of one of the largest producers of entertainment content is only another takeover and is unlikely to spread further into the industry.
Why Disney needs Bitstamp
In April, there were reports that Disney could acquire Bitstamp, one of Europe’s first crypto exchanges, as well as a 65% stake in the South Korean Korbit exchange.
Now the management of the corporation is negotiating the purchase of a 98.6% stake in Nexon. It is the largest South Korean developer and the second largest publisher of online games in the world, which is 47% owned by NXC Holding. At the same time at the end of 2018 NXC acquired Bitstamp for $ 400 million and 65% of Korbit shares through its investment structure NXMH.
The size of the possible transaction is estimated at $ 13.2 billion. If it takes place, then these two
trading platforms may end up belonging Disney.
However, such a purchase is not a strategic move to takeover the cryptocurrency market.
Since the purchase of Bitstamp and Korbit is in no way connected with Disney's core business, believs Alexey Pospehov, GR & PR director of MISSION.
"On the one hand, this is an attempt to buy a good asset, on the other - the opportunity to get a very serious expertise in the white legal field, to continue to use cryptocurrencies in the entertainment industry," - claims the expert.
However, according to Mr. Pospehov, we should not forget that Disney is a conglomerate that monetises the entertainment industry to its extreme. And it has big plans on Bitstamp.
“Bitstamp is a unique example of the first white stock exchange in the European Union, licensed in Luxembourg and which meets all compliance requirements. Therefore, it is one of the best companies for such a corporation,” explains Alexey Pospehov.
Dragonchain - blockchain from Walt Disney
However, this is not the first crypto project in the history of Disney. Back in 2015, the corporation introduced its own blockchain, Dragonchain. Its main purpose is to help companies and enterprises implement distributed registries in their business.
Dragonchain may be used to protect transactions and data. The development also supports Amazon Web Services (AWS) and plans to integrate Microsoft Azure and Google Cloud technologies.
On its website, Dragonchain compares its development with the Hyperledger Fabric,
Ethereum and R3 Corda blockchains. When comparing to them, the Disney product supposedly has a hybrid structure, fast transactions and compatibility with different distributed registries.
Source - Dragonchain
However, at the moment there are not so many companies are interested in the product. When taking into account the major collaborations, there is agricultural firm Centricity, which uses Dragonchain to verify the data of various farmers in accordance with the requirements of the GDPR. And also, a humanitarian project by Singaporean organisation M2030, which is designed to overcome malaria. The blockchain is needed there for transparent control of donation movements and their intended use.
Although Disney’s developments are not as popular as Ethereum or Hyperledger, any interest by such a large conglomerate is a positive signal for the crypto industry.
For the corporation, it may be another successful investment. After all, in April Bitstamp received a BitLicense to serve users in New York. So Disney will be able to immediately enter the largest market in the world - the United States.
In addition to financial benefits, the corporation receives effective evaluation research in the field of cryptocurrencies, which it may potentially use to monetise its products.
Author: Annabella Lapshin