DLC Formula 1 Crypto Sponsors Decline to 12 -

Formula 1 Crypto Sponsors Decline to 12

In the fast-paced world of Formula 1 (F1), crypto sponsors have been a striking presence, but recent developments tell a different story. Within a year, the number of crypto sponsors in Formula 1 has dwindled from 16 to 12.

The Crypto Boom in 2022
The 2022 F1 season witnessed a surge in crypto sponsorships, with a multitude of cryptocurrency logos adorning cars and racetracks. Top blockchain firms, cryptocurrency exchanges, and token issuers collectively invested hundreds of millions of dollars to secure a prominent position in the world of elite auto racing.

The Shift in 2023
However, the 2023 F1 season presents a contrasting picture. There has been a noticeable reduction in the visibility of crypto logos on Formula 1 cars and race circuits.

Bloomberg data shared by Wu Blockchain initially reported a decline in crypto sponsors from 16 to 10. However, further investigation revealed that the actual number is 12. Several crypto firms, including Velas, Fantom, FTX, Floki, Vauld, Tezos, and Virtua, ended their partnerships over the past year. Yet, three new crypto-F1 partnerships in 2023 brought the total back to 12.

New Partnerships in 2023
In February, crypto analytics firm CryptoDATA became the sponsor of the Alfa Romeo Sauber F1 team. In March, Kraken became the official sponsor of the F1 Team Williams. In June, Mysten Labs, creator of the Sui Network, became the official blockchain partner of Red Bull.

The Current Crypto-F1 Partnerships:
The active crypto-F1 partnerships include Tezos (McLaren), OKX (McLaren), Binance (French Alpine F1), OpenSea (Haas F1), ByBit (Red Bull), Crypto.com (Aston Martin), Socios (Aston Martin and Alfa Romeo), Everdome (Alfa Romeo), CryptoDATA (Alfa Romeo), Kraken (Williams), and Mysten Labs (Red Bull).

Factors Behind the Changes
Several factors contributed to the shifting crypto-F1 landscape. The 2022 crypto winter, marked by a significant market capitalization decline, played a role. Specific partnership terminations occurred due to various reasons:

Mercedes suspended its partnership with FTX following the exchange’s November 2022 collapse, incurring a $15 million loss.
Ferrari ended its partnership with Velas Blockchain in January 2023 for non-compliance with NFT-related clauses.
Tezos chose not to renew its partnership with Red Bull, citing a misalignment with its strategy.
Crypto.com terminated its partnership with Aston Martin due to budget cuts.

Uncertainties in cryptocurrency prices throughout 2022 also impacted crypto-F1 partnerships, with logos from Fantom and Floki no longer visible on Scuderia AlphaTauri and Alpha Romeo.

These shifts reflect the dynamic nature of both the cryptocurrency market and the world of Formula 1, where partnerships evolve alongside market conditions and strategic considerations.

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