Moana 2 Mid Credit Scene Explained

While Moana 2 does not feature a post-credit scene but as the credits begin to roll, the movie does have an interesting mid-credit scene. The villain, thundergod Nalo, was never shown in person throughout the film. All we see is either a depiction of him through drawings or in the form of a thundercloud over the mystical island of Motufetū.
In the mid-credit scene of Moana 2, we see Nalo in person and he is furious about Moana and Maui pulling Motufetū out of the ocean and lifting his curse. He had figured out that Matangi, the bat-woman helped Moana and his friends reach the island and was punishing her by tying up Matangi in lightning shackles.
Following this Tamatoa the crab from the first Moana movie shows up but this time, his shell is not covered with gold but with bones and barnacles. In classic musical style, he starts to sing but Nalo is annoyed and strikes him with lightning which scares Tamatoa. However, his presence was not just for fun but a subtle hint towards both villains teaming up to fight Moana in the future. So, we can expect Moana 3 to come out some day and until it happens, stay tuned for further updates!