Singapore F1 Grand Prix Will See Crypto Sponsors Declining
Will F1 completely lose faith in crypto? | Credit: Shutterstock
Key Takeaways
- The 2022 crypto crash sees many crypto-F1 sponsorships end.
- CryptoData joins the list of F1 crypto sponsors.
- Crypto token devaluations lead to the suspension of partnership deals for their companies.
During the Singapore F1 races in 2022, crypto companies took center stage as sponsors for different different teams, including Ferrari and Alfa Romeo.
However, in the 2023 edition of the event, many racing teams have dropped crypto sponsors, signaling the decline of F1’s partnership with the crypto industry.
The Decline Of F1/Crypto Partnerships
In 2022, F1 saw major crypto brands heavily investing in sponsorships, covering cars and tracks. However, the 2023 car lineup reveals a reduced crypto presence in the sport.
In comparison to last year, crypto sponsorships in the F1 race events dropped by 25%, from 16 sponsors to 12.
The general direction towards abandoning crypto sponsors is likely due to a rough 2022 for the digital asset sector.
Following the events of FTX’s collapse, the crypto market, and its credibility, took a hit across different industries.
Mercedes, one of F1’s leading teams, along with famous driver Lewis Hamilton, signed a sponsorship agreement with FTX in 2022. However, the end of the year saw a stipulation agreement filed by Mercedes to dissolve its partnership with the collapsed exchange.
Mercedes can’t ignore its partnership with FTX as seen in Netflix’s Drive to Survive, featuring FTX logos on cars, uniforms, and merchandise.
The Ferrari team also announced the end of its partnership with Swiss crypto firm Velas.
“Unfortunately, the agreement with Velas has been terminated early by us,” Ferrari said in a statement to Bloomberg News. The company didn’t provide further details regarding the finances involved or litigation proceedings.
Why Is This Happening?
While the reasons are not completely clear when it comes to the details of any of the ended partnerships, whether it’s Mercedes, Ferrari, or others, a quick look at crypto news in 2022 can draw a clear picture.
The removal of FTX logos makes complete sense as the company already filed for Chapter 11 bankruptcy, rendering it incapable of commerce and, hence unable to benefit from sponsorship agreements.
Other crypto issuers and exchanges have seen a significant decline in market activity and token valuations over the last fiscal year, signaling the potential fall of a sector F1 likely would prefer not to link itself with.
Wu Blockchain, a prominent crypto reporter on X, initially reported the presence of only 10 crypto sponsors in F1 teams. However, it later corrected the number of sponsors to 12. Nevertheless, teams like Ferrari, Mercedes, and Williams have not yet announced any crypto sponsors.
