The racing arm of Scuderia Ferrari has ended its contract with crypto sponsor Velas. The partnership has been running since 2021 and was valued at $30 million a year. The parties planned to involve racing enthusiasts through NFT and other joint projects.
The official reason for the termination of the partnership is “non-compliance with the terms of the contract.” Insiders say that Ferrari allegedly violated copyright provisions by allowing Velas to release NFTs with their images. And the crypto company found financial irregularities. The sources added that the parties are facing legal action over the matter.
Ferrari recently terminated a contract with another premium sponsor, Snapdragon chip maker. They lose $55 million in monthly aid due to the loss of two partners.
Crypto and sports are no longer friends?
In November, the Mercedes brand suspended cooperation with the FTX exchange. But the reasons here are clear – the bankruptcy of the company.
Experts do not rule out that soon other racing teams will also break contracts with blockchain firms. Even though Formula 1 attracted an unprecedented number of crypto sponsors last year.
But it is worth noting that the relationship between Formula 1 and the crypto industry goes beyond just sponsorship. Last October, the racing association applied for registration of new trademarks. They relate to plans to create an NFT marketplace, branded tokens and other projects in the crypto world.