The racing unit of luxury automaker [Ferrari](https://www.ferrari.com/), part of the 2023 Formula One World Championship, has terminated its contract with the cryptocurrency sponsor, [Velas](https://velas.com/), causing the F1 Ferrari team to lose backing worth millions of dollars before the start of the season. The news came just a month before the pre-season testing.

## F1 Ferrari and crypto sponsors split up

Scuderia Ferrari partnered with the Velas blockchain firm in 2021. The deal assigned a yearly amount of $30 million to boost fan engagement via different initiatives, including non-fungible tokens ([NFTs](/news/article/virtual-land-nft-rush)). It was a multi-year arrangement, but now Ferrari has broken its ties with the blockchain firm.

The partnership lasted only a year, as neither party would renew their alliance. According to some sources, the team was non-compliant with the clauses that permitted Velas NFT creation. 

Furthermore, chip manufacturing company, [Qualcomm Snapdragon](https://www.qualcomm.com/snapdragon), won't be part of Scuderia's sponsors. Following the splits, the logos of both these companies will be removed from Ferrari's partner list for the 2023 Formula One Championship.

The end of the partnership has also resulted in heavy losses for the racing team. The Italian squad has to bear losses of around $55 million.

## Teams cutting ties with crypto firms

It is not the first time an [F1 team](/news/article/formula-one-teams-crypto) has ended its partnership with a crypto company. Various automakers are also hesitant to work with blockchain firms. 

Earlier, Mercedes withdrew from its deal with the cryptocurrency exchange FTX. It was after the exchange filed for Chapter 11 bankruptcy. Red Bull's racing team also ended its association with the Tezos Foundation because of the misalignment of strategies between the two firms. 

Web3 projects and crypto firms have been a part of sports events for some time. Crypto.com was also one of the sponsors of the [2022 FIFA World Cup](/news/article/cronos-crypto-falls-flat-world-cup), but it gained little traction from the partnership. The market going through a crypto winter may affect these partnerships, further aggravating the bear run.


red image of Velas Scuderia Ferrari with crypto coins bordering

F1 Ferrari Team Breaks Ties with Crypto Firm

As an official partner of Haas F1, they will collaborate with the team and external [contributors](https://www.haasf1team.com/news/haas-f1-team-partners-opensea-future-nft-collaborations) to create a range of branded NFTs. The F1 Team and OpenSea will work together to create an outstanding utility that will bring fans closer to the team and fascinating collections to the NFT community. 

They seek to present new and differentiated collections to the NFT community, with a shared vision of increasing participation and creating unique, best-in-class Web3 experiences.

## Where will the OpenSea logo appear on Haas F1 car? 

In support of the collaboration, the [emblem](/news/article/nft-hackers-passports) will feature on the F1 Team's VF-22 entry for increased exposure. 

"We've been looking for the perfect partner in the NFT area, and we've found it in Guenther Steiner, Team Principal of the respective F1 Team".  

Haas added that they know they will be in excellent hands with the leading peer-to-peer marketplace guiding them on their collections and fan interaction opportunities since OpenSea is an industry leader with innovation at the heart of all they do.  

According to Shiva Rajaraman, [NFTs](https://www.thepaddockmagazine.com/opensea-and-haas-f1-team-sign-a-partnership-agreement/) can unlock new experiences and provide a canvas to bring people together in new ways around the things they love. We're excited to work with the F1 team to create unique collections, new experiences for their devoted fan base, and new opportunities for everyone to come even closer to the action.

## What is OpenSea? 

OpenSea is the world's leading peer-to-peer marketplace for NFTs. They are on a mission to help the world's creators, collectors, and collaborators own and shape their relationships directly. We're building the world's most trusted and inclusive NFT marketplace with the best selection.

The leadership team is based in New York and includes Google, Palantir, Lyft, Uber, Stanford, and Berkeley members. a16z, Paradigm, Coatue, YCombinator, Founders Fund, Coinbase Ventures, 1Confirmation, and Blockchain Capital are among the investors.


Haas F1 racing team's collaboration with OpenSea

In the summer of 2021, Formula One announced a partnership with one of the fastest-growing crypto exchanges, with over 10 million users worldwide, as the inaugural global partner of the new Sprint series. This important partnership elevates crypto to mainstream multi-media and introduces crypto to a mass audience who may not have any previous knowledge or awareness on the subject.

Then in February 2022, Formula One world champions, [Red Bull Racing](https://www.redbullracing.com/int-en), announced details of a sponsorship deal with a Singapore-based crypto exchange worth a reported $150 million. Although details on the deal are scant, it is understood to be the largest cryptocurrency sponsorship deal in international sport, signalling continued adoption and legitimacy for crypto.

The three-year deal sees the crypto exchange become a Red]Bull Racing ‘principal team partner’, with the aim to grow fan engagement and manage the issuance of the forthcoming fan token. The deal comes after the company became the main sponsor of the Argentinian national football team in November.

Lewis Hamilton, who is arguably the most famous and successful F1 driver currently racing for Mercedes, is sponsored to wear the branding of another crypto exchange. Further expanding global awareness across the Formula 1 fanbase.

## Fan tokens

Fan tokens are digital assets that enable sports teams, leagues, clubs, associations, and players to strengthen engagement with fans around the world. The rise of this unique area of digital assets is expected to continue throughout the year and into the near-term future, as more and more household names look to get involved. 

Holders of fan tokens are permitted to access a variety of fan-related membership perks such as voting on club decisions, rewards, merchandise design, and unique fan experiences. Fan tokens have the ability to democratise and organise fan engagement while giving the fan the opportunity to feel more involved. Unlike [NFTs](/news/category/nft-news), fan tokens are interchangeable and just like fiat, can be exchanged for merchandise, VIP experiences, and much more.

The world-class football player, Lionel Messi, recently signed a new contract with the French team PSG in which a percentage of his payment is being paid in the PSG Fan token. How long will it be before F1 drivers start getting paid in fan tokens by their teams?

## “At the forefront of technological innovation”
 
In a statement, Red Bull Racing team principal, Christian Horner, stated  that “the team’s passion to exist at the forefront of technological innovation, to set the competitive pace and to disrupt the status quo.” Horner went on to say that the partnership with the crypto exchange would enliven “the fan experience in F1 through digital innovation……  and will help us build a deeper, more immersive, and unique connection with the team for fans around the world.”



Formula One Teams Make Moves in Crypto

McLaren Racing have announced that they are launching their first collection of digital art NFTs on the Tezos blockchain. The collection enables buyers to build their own digital MCL35M Formula One car by purchasing parts of the popular F1 car.

You can unlock your first part of the MCL35M for free when you register through the collections website.

## McLaren and Tezos Partner 

The first collection drop will include 22 digital components, and aims to serve a global community of collectors and fans.

The McLaren Racing team's Official Technical Partner, Tezos, are collaborating with McLaren to create the NFTs. Launching on the Tezos blockchain will ensure energy-efficiency for collectors.

According to the McLaren [website](https://www.mclaren.com/racing/partners/tezos/mclaren-racing-creates-mclaren-racing-collective/), the first collector to complete a full MCL35M digital F1 car will be rewarded with a VIP race weekend experience next year. The initiative hopes to drive long-term engagement with fans.



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Formula One Crypto News

Read the latest Formula One crypto news.

F1 Ferrari Team Breaks Ties with Crypto Firm

Haas F1 racing team's collaboration with OpenSea

Formula One Teams Make Moves in Crypto

McLaren Racing Team Launch NFTs