Formula 1 teams seem to be taking an interest in crypto advertising againdespite the exodus of crypto sponsors after the notorious crises of last year.
On March 28, American crypto exchange Kraken announced that it is partnering with F1 team Williams Racing on a new Web3 and sponsorship deal. It is the first major cryptocurrency company to sign a new Formula 1 deal this year.
The deal will not only include Kraken branding on Williams race cars, but also branded team merchandise and non-fungible tokens (NFTs) for team fans to collect.
Digital collectible artwork owned by KrakenNFT customers will also be on display on the rear wing of the car. of leading third-party NFT projects in select races.
Williams Racing Chief Commercial Officer James Bower said: “We are excited to kick off the partnership to offer our fans cutting-edge cryptocurrency and Web3 experiences, while also allowing Kraken to reach new corporate and institutional clients through our network and events.”
Today we’re thrilled to announce Kraken as an official partner of @WilliamsRacing!
Together we’re accelerating the crypto revolution on and off the grid
More info: https://t.co/ASxKLrBlFo pic.twitter.com/5RfIdkZKbZ
— Kraken Exchange (@krakenfx) March 28, 2023
Today we are excited to announce Kraken as an official partner of @WilliamsRacing! Together we are accelerating the cryptocurrency revolution on and off the grid. More information:
Several Formula 1 racing teams quickly dropped their cryptocurrency sponsorship deals when things started to go south in late 2022.. In mid-November, the F1Mercedes team suspended a partnership deal worth an estimated $27 million with beleaguered exchange FTX.
Besides, Ferrari abruptly ended a long-term deal with Swiss blockchain organization Velas in January. Alfa Romeo dropped its sponsor, Vauld, following the cryptocurrency lender’s troubles last year.
In September, Singapore banned cryptocurrency advertising around the track, but allowed it to remain on cars. Other countries, such as France, also placed restrictions on cryptocurrency ads on the runway last year, forcing some teams to retire them.
However, some sponsorship agreements have been maintained. The Aston Martin team has maintained its crypto sponsors, Crypto.com and Partners. Binance remains the partner of the Alpine team and OKX and Tezos remain with McLaren Racingaccording to reports from earlier this month.
For his part, the Red Bull Racing team has kept its crypto sponsor Bybit and OpenSea sticks with Haas.
Kraken’s deal with Williams Racing could be the start of a return to racing and sports for crypto companies in 2023, as markets recover.
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