Ferrari ends partnership with crypto sponsor of Formula 1 team

The Ferrari-Velas partnership, formed in 2021, was expected to pay out $30 million a year and was aimed at attracting new fans through the NFT. Scuderia Ferrari, the racing division of the Italian supercar manufacturer, has joined an expanding list of Formula 1 teams that have ended their collaboration with crypto sponsors.. Ferrari terminates partnership with Velas Blockchain and Snapdragon chip maker. As a result, the company lost $55 million before the start of the 2023 season. The agreement between Ferrari and Velas, signed in 2021, provided for payments of $30 million per year.. The main task was to attract new fans, in particular, through non-fungible tokens. However, according to RacingNews365, the company ignored the regulations that allowed Velas to create such NFTs. In November 2022, the Mercedes team suspended its cooperation with the FTX exchange, which resulted in a loss of $15 million.. This happened due to the fact that the exchange filed for bankruptcy.. The same fate befell the racing team Red Bull Racing and its partner Tezos Foundation. The initiator was the blockchain company, citing the discrepancy between the agreement and the company's strategy as the reason.