The typical Chinese sources have been selling "digital hourglass" type ornaments that work like this for a while.
There was a whole game based on this sort of thing back on the Acorn Archimedes: Cataclysm https://www.youtube.com/watch?v=3Byyz1Vlv8w It got remade for the 360, but the original was regarded at the time as surprisingly impressive for the machines it was running on.
You could make a bad analogue of such a thing using WLED - although as many people have observed it has a tendency of turning anything anywhere into looking like a vape shop.
The problem is so much of the effect of a disco ball is irregular directional beams reflecting off it, which would be hard to do.
There was a whole game based on this sort of thing back on the Acorn Archimedes: Cataclysm https://www.youtube.com/watch?v=3Byyz1Vlv8w It got remade for the 360, but the original was regarded at the time as surprisingly impressive for the machines it was running on.