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.
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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.
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Source: Racing News 365
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