The influence of cryptocurrency as blockchain partners of Formula 1 has been increasing since this season. Not surprising in itself, because the royal class has achieved a huge amount worldwide. A good opportunity for the crypto market to further increase brand awareness.
One has nothing to do with it, but another will agree that interest in crypto has increased enormously in recent years. Particularly since 2021, it seems that the digital currency has finally broken through. Interest is increasing and this is reflected in the growing amount of advertising on television and radio. Crypto has now also found her way into Formula 1, one of the largest motorsport stages in the world. For example, Crypto.com committed itself as a major sponsor to the sprint races in Formula 1 this season, but they were also visible during other race weekends.
$100 million deal
The deal between Formula 1 and Crypto.com – a platform that allows users to trade cryptocurreny – is an agreement for no less than five years. Formula 1 is therefore also committed to the long term. Logically, the exact details of this agreement have not been released, but it is known that at least $100 million was involved in the signature.
However, it is not just about generating brand awareness. Crypto.com wants to develop exclusive NTFs together with Formula 1. An NFT (Non-Fungible Token) is a way of linking ownership to digital objects. In this way, everything that is digital basically becomes a kind of exclusive digital artwork. Since there is only one of them, it is unique. And that entails a certain value. Think, for example, of a gif of Max Verstappen. In this way, among other things, NBA basketball tickets are already traded worldwide.
Crypto.com has something similar in mind for Formula 1. “We are excited to partner with Formula 1 to develop exclusive NFTs that connect fans to the sport in new and innovative ways,” said co-founder Kris Marszalek. The Overtake Award – a ranking in which the number of overtakes of the drivers is tracked – was also set up in collaboration with Crypto.com.
Ethereum also part of the party
Besides Crypto.com, there are also plenty of other blockchain companies that are eager to commit to Formula 1. Ethereum for example. Anyone interested in crypto has undoubtedly heard of it. Ethereum is a software platform built on blockchain technology with its own cryptocurrency of the same name and will reportedly become a sponsor of the royal class from next season. Sources have confirmed this to Formula1News.co.uk.
What is Blockchain?
For the Formula 1 fans with no interest in crypto: Blockchain is simply a technology that allows transactions to be faked. Not only financial transactions, but also sending a message is seen as a transaction, for example, or the storage of a document. Transactions made via blockchain are publicly recorded. Transactions that are concluded using blockchain technology therefore in principle do not require an intermediary. The blockchain is then the control.
As a result, the role of banks, for example, is taken over by a technology. Instead of a database owned by bankers, there is an ownerless database — the blockchain — that handles transactions and records ownership. Many find a big advantage of the bockchain that there is no influence from banks.
Red Bull Racing and Mercedes are also collaborating with crypto companies. The Austrian formation has a collaboration with Tezos (see halo), which has its own crypto currency in XTZ. Like Crypto.com, Tezos also bets on NFTs that they want to bring to the attention of fans. Tezos also has an agreement with the McLaren Formula 1 team. Mercedes has teamed up with FTX Trading Limited, a crypto exchange platform that allows trading in cryptocurrencies. Crypto and Formula 1 therefore seem to be becoming more and more intertwined.