The collaboration with Velas, worth $30 million per year, aimed to increase fan engagement through nonfungible tokens and other initiatives. However, RacingNews365 reported that the team was noncompliant with clauses allowing Velas to create NFT images.
Mercedes and Red Bull Racing End Crypto Partnerships
Mercedes suffered a loss of $15 million after suspending its partnership with crypto exchange FTX, which filed for Chapter 11 bankruptcy. In contrast, Red Bull Racing's partnership with Tezos Foundation reportedly ended due to strategy misalignment. Toto Wolff, the team principal and CEO of the Mercedes-AMG Petronas F1 Team, warned that other teams could face similar situations.
F1 Plans to Launch Online Marketplace for Cryptocurrency and NFTs
In October 2022, Formula One announced plans to set up an online marketplace for cryptocurrency, meta tokens, digital collectibles, crypto-collectibles, and nonfungible tokens. Deloitte's "2022 Sports Industry Outlook" report predicted a growing market for NFTs and immersive technologies in blending real and digital worlds. However, mainstream adoption faces the challenge of a need for more easy-to-use platforms.
