Ferrari cuts ties with crypto sponsor ahead of 2023 Formula One season

Must read

Former FTX executives Backpack exchange expands to 11 US states

Former FTX executives Backpack exchange expands to 11 US states Oluwapelumi Adejumo · 2 mins ago · 2 min read...

Bitcoin options worth $3.7 billion approaching expiration – Deribit

What is CryptoSlate Alpha?A web3 membership designed to empower you with cutting-edge insights and knowledge. Learn more ›Connect via Access ProtocolAccess Protocol is a...

Ethereum breaks 22-month record crossing $3000 amid positive market speculations

Ethereum’s price soared to a noteworthy milestone in the past day, briefly crossing the $3,000 mark for the first time in 22 months.During this...

Bitcoin’s climb to a yearly high triggers market shakeup

What is CryptoSlate Alpha?A web3 membership designed to empower you with cutting-edge insights and knowledge. Learn more ›Connect via Access ProtocolAccess Protocol is a...

The Ferrari-Velas partnership from 2021 — set at $30 million a year — was aimed at increasing fan engagement through nonfungible tokens (NFTs) and other shared initiatives.

8330 Total views

65 Total shares

Ferrari cuts ties with crypto sponsor ahead of 2023 Formula One season

Ho-ho-ho! Get Limited Holiday Trait!

Collect this article as an NFT

Scuderia Ferrari, the racing division of luxury carmaker Ferrari, joined the growing list of Formula One racing teams to end partnerships with their cryptocurrency sponsors. Ferrari exited its multi-year partnership deals with Velas Blockchain and chip manufacturing giant Snapdragon, resulting in a cumulative $55 million loss for the Italian team ahead of the 2023 season.

The Ferrari-Velas partnership from 2021 — set at $30 million a year — was aimed at increasing fan engagement through nonfungible tokens (NFTs) and other shared initiatives. However, the team was noncompliant with the clauses that permit Velas to create NFT images, according to RacingNews365.

On November 2022, Mercedes, too, bore a loss of $15 million after suspending its partnership with FTX as the crypto exchange filed for Chapter 11 bankruptcy. Red Bull Racing’s partnership with Tezos Foundation suffered a similar fate as the blockchain company reportedly decided not to renew its agreement citing strategy misalignment.

Toto Wolff, the team principal and CEO of the Mercedes-AMG Petronas F1 Team, warned that other teams could come across a similar situation. However, the relationship between F1 and the crypto ecosystem spans beyond partnerships. On October 2022, Formula One filed ‘F1’ trademarks as it revealed plans to set up an online marketplace for cryptocurrency, meta tokens, digital collectibles, crypto-collectibles and NFTs.

Related: Argentine football league scores metaverse partnership after World Cup triumph

Amid a bear market, Web3 projects have taken up the lead to strengthen engagement between fans and sports leagues.

Deloitte’s “2022 Sports Industry Outlook” report predicted an acceleration in the blending of real and digital worlds, along with growing markets for NFTs and immersive technologies. As Cointelegraph reported, the lack of easy-to-use platforms stands as the biggest challenge for mainstream adoption.

More articles

Latest article

Former FTX executives Backpack exchange expands to 11 US states

Former FTX executives Backpack exchange expands to 11 US states Oluwapelumi Adejumo · 2 mins ago · 2 min read...

Bitcoin options worth $3.7 billion approaching expiration – Deribit

What is CryptoSlate Alpha?A web3 membership designed to empower you with cutting-edge insights and knowledge. Learn more ›Connect via Access ProtocolAccess Protocol is a...

Ethereum breaks 22-month record crossing $3000 amid positive market speculations

Ethereum’s price soared to a noteworthy milestone in the past day, briefly crossing the $3,000 mark for the first time in 22 months.During this...

Bitcoin’s climb to a yearly high triggers market shakeup

What is CryptoSlate Alpha?A web3 membership designed to empower you with cutting-edge insights and knowledge. Learn more ›Connect via Access ProtocolAccess Protocol is a...

Bitcoin exchange balance dips to lowest since 2018 as market shifts to HODLing

Bitcoin exchange balance dips to lowest since 2018 as market shifts to HODLing Andjela Radmilac · 3 hours ago · ...