Scuderia Ferrari, the racing division of the luxury car company Ferrari, joined the growing list of Formula One racing teams that break links with their cryptocurrency partnership. Ferrari ended its long-term partnerships with chip maker Snapdragon and blockchain company Velas Blockchain. This cost the Italian team $55 million before the 2023 season.
The goal of the Ferrari-Velas partnership, which started in 2021 and cost $30 million a year, was to get fans more involved through nonfungible tokens (NFTs) and other shared projects. But, according to RacingNews365, the team wasn’t following the rules that allow Velas to make NFT images.
On November 2022, Mercedes bore a loss of $15 million after suspending its partnership with FTX as the crypto exchange filed for Chapter 11 bankruptcy. The same thing happened to the collaboration between Red Bull Racing and Tezos Foundation. The blockchain company reportedly decided not to renew the agreement, citing a misalignment in strategy.
Toto Wolff, the team principal and CEO of the Mercedes-AMG Petronas F1 Team, said that other teams could face a similar problem. But F1 and the crypto ecosystem are linked in more ways than just partnerships. Formula One trademarked “F1” in October 2022 and announced plans to create an online market for cryptocurrencies, meta tokens, digital collectibles, crypto-collectibles, and nonfungible tokens (NFTs).