Ferrari got a major sponsor at the end of 2021 signing a multi-year deal with blockchain company Velas.
Reports indicate Ferrari signed a deal worth $30 million with blockchain company Velas at the end of the 2021 season. However, the team is set to lose the sponsor.
Velas had plans to launch Ferrari-themed NFTs before the deal was terminated. It was earlier believed that the company terminated the agreement with the team due to Ferrari not allowing the side to produce these NFTs.
However, the latest reports indicate that the real reason was different. Reports suggest that the blockchain company was looking for any excuse possible to terminate the sponsorship. This was because of the current state of the cryptocurrency market.
This means that we will not see the Velas branding on the rear wing of Ferrari’s 2023 car.
Just like any other crypto company, Velas are seizing its marketing campaigns due to the unstable crypto market.
For Ferrari, losing this sponsor would not be that harmful to the side. The values of Velas’ tokens have already declined by 94% in the past 12 months only.
Now, it seems like cryptocurrency sponsorship is on a decline in F1. Just like how quickly the trend started, it seems it is fading away now. The biggest blow was arguably the FTX going bankrupt.
The FTX company was considered “one of the most credible and solid” companies in the market by Toto Wolff himself.
Looking at these declines, the future of cryptocurrency sponsors in F1 is questionable.
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