Ferrari F1 team dismisses crypto sponsor, loses €51 million

In recent years we saw that many teams in Formula 1 were sponsored by crypto businesses. Some examples are Mercedes, Red Bull Racing, McLaren and Ferrari. However, the latter now seems to be done with it. The team from Italy has dissolved the current contract with Velas Blockchain (VLX). In total, this would have led to a loss of tens of millions for Ferrari.

Ferrari no longer wants to sponsor crypto

The collaboration between Ferrari and Velas was already concluded in 2021. It blockchain project would pay $30 million a year to Ferrari and in return Ferrari would pay their fan engagement increase by putting NFTs issued by Velas up for sale.

According to sources at Racingnews365 Ferrari would also not have adhered to the agreements in the agreement. For example, it would have been clearly agreed that Velas NFTs was allowed to make of the Ferrari team, but in practice this turned out to be something that Ferrari refused to cooperate with.

All in all, it would ultimately not lead to a successful partnership. It is even stated that both parties may take legal action over the broken cooperation.

Ferrari also stopped cooperation with chipmaker Snapdragon. In total, the loss for Ferrari would amount to around €51 million.

F1 and crypto companies

Ferrari is not the first F1 team to part with a crypto sponsor. Previously, Mercedes was also forced to do this. The German team led by Toto Wolff was sponsored by crypto exchange ftx. We all know how it is with this one by now crypto exchange expired.

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It goes without saying that the cooperation between Mercedes and FTX also ended. This would leave Mercedes with a loss of about $15 million. Naturally, all FTX logos were removed from the team’s cars. The same is now true for Ferrari and their Velas Blockchain logos.

Toto Wolff previously predicted in response to the FTX demise that several teams would face similar situations:

“Every team has such sponsors, and the Formula 1 organization as such does too. So everyone would be affected”

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