In advance of the next Formula One racing season, Ferrari has ended its collaboration with the Velas blockchain. According to reports, Scuderia Ferrari refused to follow the conditions that had to be met before Velas could produce NFTs for the business. Ferrari’s suspension of its blockchain partnership has resulted in losses of about $55 million.
The Velas branding that was on the F1-75 car will soon be removed. The reason for this ‘mutual decision,’ as far as Ferrari’s partnership with Qualcomm’s Snapdragon is concerned, is reportedly still unknown.
The chipmaker provided Ferrari with technical support while also paying Ferrari $30 million to promote the business. The environment has changed significantly over the past year, with the value of cryptocurrencies and blockchains declining significantly. This partnership may have ended because of a significant decline in the market value of Velas, as indicated by Coinmarketcap.
However, it was an effort to find new ways to connect with their fans, high-end automakers like Ferrari have also tapped into the blockchain and NFTs industries.
Also Read: 5 Best Metaverse Games To Enjoy This Winter
Ferrari and other Companies That Cut Ties With Crypto After FTX Collapse
Mercedes joined the cryptocurrency bandwagon after signing a sponsorship agreement with the FTX cryptocurrency exchange in September 2021. The FTX exchange went under last year, and as a result, the partnership automatically broke up and filed for bankruptcy.
Tezos Foundation’s decision not to renew their agreement in December 2022, citing changes in its “strategical priorities.” However, it caused Red Bull Racing’s partnership with them to fall apart in the midst of the ongoing decline of the entire crypto market. The majority of the F1 grid had some kind of cryptocurrency sponsorship or agreement last year. This is still the case, but the trend appears to be clearly going in one direction.
After the FTX collapse, there are still signs of stress in the cryptocurrency industry, as lender Amber Group also going to end its sponsorship deal with English soccer powerhouse Chelsea. As Chelsea’s official sleeve sponsor, Amber agreed to pay WhaleFin, its flagship cryptocurrency exchange, $25 million in March.
Also Read: What is NFTs Rarity? Why Is Rarity Important For NFTs?
The post Ferrari Joins List Of Growing Companies That Cut Ties With Crypto appeared first on CoinGape.