Ferrari’s racing division, Scuderia Ferrari, has ended partnerships with its cryptocurrency sponsors Velas Blockchain and Snapdragon, resulting in a loss of $55 million for the team ahead of the 2023 Formula One season.
The partnership with Velas, worth $30 million per year, aimed to increase fan engagement through the use of non-fungible tokens (NFTs) and other shared initiatives, but the team reportedly failed to comply with clauses allowing Velas to create NFT images.
Mercedes also recently suffered a loss of $15 million after suspending its partnership with crypto exchange FTX, which filed for Chapter 11 bankruptcy.
Red Bull Racing’s partnership with Tezos Foundation was not renewed due to strategy misalignment. Formula One has also filed trademarks for an online marketplace for cryptocurrency, meta tokens, digital collectibles, and NFTs.