In the world of Formula 1, cryptocurrency partnerships seem to be out of fashion. We have just learned that the Ferrari team has canceled the contract with Velas. A move that follows similar news from Mercedes and Red Bull. Update this trend.
Ferrari Velas stops cooperation with blockchain
In December 2021, Ferrari signed a significant multi-year contract with the Velas (VLX) blockchain. Several partnerships have been signed this year between major blockchain players and disciplinary bodies. For example, we remember the huge $100 million deal signed between Crypto.com and Formula 1. Most stable had a blockchain partner a few months ago.
But this is no longer the case. We just learned Ferrari has ended its partnership with Velas blockchain. It’s a particularly costly maneuver for the team: it costs $55 million ahead of the 2023 season. According to RacingNews 365, which spoke to a source close to the matter, Ferrari did not honor the provisions allowing NFTs. In addition, the Velas company would be in financial trouble. It is possible that this breakup of the partnership will lead to legal action to redress this frustration.
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Other stables are also moving away from the sector
List F1 teams opting out of blockchain partnership stretches. This is partly due to the FTX case and the collapse of trust in the ecosystem. Last November, Mercedes saw its partnership with FTX de facto terminated after the platform collapsed. As for Red Bull, it was Tezos (XTZ) that decided to cancel the deal. Mason Edwards, Tezos’ commercial manager, explained this in a not-so-impressive press release:
“Tezos Foundation has decided not to renew its contract with Red Bull Racing. because it no longer fit our current strategy.»
This is a trend that can be seen everywhere: the successive collapses of the two major market players, Terra (UST) and FTX, as well as subsequent price falls, brought back a huge reluctance about the ecosystem. Therefore, it will certainly take time for crypto companies to regain favor in the sports world.
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Source: Racing News 365
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