Cryptocurrencies are apparently no longer fashionable in the world of Formula 1. We have just learned that the Ferrari team has canceled the deal with Velas. A move that follows similar news from Mercedes and Red Bull. Update on this trend.
Ferrari concludes its partnership with the Velas blockchain
In December 2021, Ferrari signed a substantial multi-year deal with the Velas (VLX) blockchain. This year, several partnerships have been signed between key blockchain players and entities related to the discipline. We recall, for example, the massive contract between Crypto.com and Formula 1, with an amount of 100 million dollars committed. Most stables had a blockchain-related partner a few months ago.
But that is no longer the case. We just learned that Ferrari has ended its partnership with the Velas blockchain. This is a particularly expensive maneuver for the team: it costs 55 million dollars in view of the 2023 season. According to RacingNews 365, which interviewed a source close to the case, Ferrari has not complied with the clauses allowing NFTs. Furthermore, the Velas company would be in financial difficulty. It is possible that this breakdown in the partnership will lead to legal action, in order to resolve this disenchantment.
👉 To go further – Fan token: cryptocurrencies designed for the world of sport
The reference platform for buying and trading more than 600 cryptocurrencies
10% off your commissions with the code ZWUFE2S1 🔥
The other teams are also moving away from the sector
The list F1 teams that have abandoned their blockchain partnership it is stretching. This is partly due to the FTX affair and the collapse of trust in the ecosystem. Last November, Mercedes saw its partnership with FTX effectively cancelled, following the platform’s bankruptcy. As for Red Bull, it was Tezos (XTZ) who decided on their own to terminate the agreement. This was announced by Mason Edwards, the commercial manager of Tezos, in an ineloquent press release:
“The Tezos Foundation has decided not to renew the agreement with Red Bull Racing, because it no longer corresponded to our current strategy.»
This is a trend that can be seen everywhere: the consecutive crashes of two big market players, Terra (UST) and FTX, as well as the subsequent fall in prices, reported a very great reluctance towards the ecosystem. So it will certainly be some time before cryptocurrency companies attract favor again in the sports world.
👉 Listen to this article and all other cryptocurrency news on Spotify
Progress in the world of cryptocurrencies with Cryptoast experts 📘
Source: Racing News 365
News 🍞
Receive a roundup of cryptocurrency news every Monday by email 👌
What you need to know about affiliate links. This page features investment related goods, products or services. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused as a result of using a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
MFA recommendations. A high return is not guaranteed, a product with a high return potential carries a high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose some of these savings. Do not invest if you are not ready to lose all or part of your capital.
Read more on our Financials, Media Transparency and Legal Notices pages.
Cryptoast reporter, I fell into the cryptocurrency pot a few years ago. I am passionate about the innovative technologies that come with the blockchain and I like to find the most crunchy information to share with you.
Marine Debelloir
2249 articles