Last Updated on January 8, 2023 by Bitfinsider

Scuderia Ferrari, the racing subsidiary of the premium automobile manufacturer Ferrari, has joined the growing number of Formula One racing teams who have severed ties with their cryptocurrency sponsors. Before the 2023 season, Ferrari terminated their multi-year partnerships with Velas Blockchain and chip manufacturer Snapdragon, resulting in a total loss of $55 million for the Italian club.

The Ferrari-Velas relationship, commencing in 2021 and valued at $30 million year, was intended to increase fan involvement via nonfungible tokens (NFTs) and other joint projects. According to RacingNews365, the team was noncompliant with the conditions that allowed Velas to make NFT pictures.

In November 2022, Mercedes also incurred a $15 million loss after terminating its collaboration with FTX and the latter filing for Chapter 11 bankruptcy. The relationship between Red Bull Racing and Tezos Foundation met a similar fate, as the blockchain startup apparently opted not to renew the deal, citing misaligned business strategies.

Toto Wolff, team principal and chief executive officer of the Mercedes-AMG Petronas F1 Team, cautioned that other teams may face a similar circumstance. However, F1’s engagement with the cryptocurrency industry extends beyond collaborations. Formula One filed ‘F1’ trademarks in October 2022 and announced plans to establish an online marketplace for cryptocurrencies, meta tokens, digital collectibles, crypto-collectibles, and non-fungible tokens (NFTs).