Formula One just struck another crypto deal — this time for a reported $100 million

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Formula One just struck another crypto deal — this time for a reported $100 million
Formula One has announced Crypto.com as inaugural global partner of the F1 Sprint seriesFormula One
  • Formula One has struck a new sponsorship deal with digital assets company Crypto.com for a reported $100 million.
  • The deal will give Crypto.com best-in-class branding slots at the new Sprint qualifying rounds.
  • Crypto.com also signed a multi-year deal with Aston Martin Cognizant Formula One Team in March 2021.
Formula One has struck another deal with the crypto industry, this time for a reported $100 million in a sponsorship agreement with Crypto.com. The digital assets company will get some of the top-tier slots for advertising at the new Sprint qualifying rounds during the upcoming British Grand Prix, according to Forbes.

According to CNBC, the whole deal is for five years, and Crypto.com will also receive trackside slots at Formula One races.

As F1 continues to explore new ways for fans to engage and become more immersed in the sport, Crypto.com will also become the Official Cryptocurrency Sponsor and NFT Partner of F1.

Statement by F1

Formula One has been bullish on the future of cryptocurrencies, at least when it comes to non-fungible tokens (NFTs). Earlier this month, the car racing organisation revealed that McLaren Racing plans to build a non-fungible token (NFT) platform on the Tezos blockchain.
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Who is Crypto.com?

Crypto.com is no stranger to racing or Formula One. It signed a multi-year deal with Aston Martin Cognizant Formula One Team in March 2021. The venture brought exclusive experiences to fans of the team and traders, while Crypto.com received branding on Aston Martin's 2021 cars. Crypto.com also became the official cryptocurrency and NFT sponsor of the 2021 Coppa Italia.

Formula One just struck another crypto deal — this time for a reported $100 million
<em>Ahead of its 2021 Formula One car launch in March, Aston Martin Cognizant Formula One Team announced a global partnership with cryptocurrency platform, Crypto.com</em>Crypto.com

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Crypto.com is said to have 10 million users, and its services are available via an Android or iOS app. The company has a range of services, including crypto trading, a Visa-issued physical card, coin staking, payments solutions, and an NFT marketplace (non-fungible token). It's portraying itself as a one-stop shop for everything crypto and has global ambitions.

The launch of a token will not only add to the revenue stream for the Formula One team involved — whether that’s McLaren or Aston Martin — but also act as a springboard for a new medium of fan innovation and engagement.

NFTs is giving sports a new way to make money

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NFTs have proven to be an asset for digital safekeeping and addresses the rising challenges of a remote-first world."We look forward to many years of innovating together," Crypto.com co-founder and CEO Kris Marszalek said in a statement. "We're also excited to partner with F1 in the development of exclusive NFTs, connecting fans to the sport in new and innovative ways."

The Coronavirus pandemic presented a unique challenge for event organisers — finding a new revenue source amid empty stadiums, dipping merchandise sales, and non-existent tourism. Even though Formula One could get back on track faster than others, dwindling on-site revenues posed a considerable risk.

Amid the uncertainty, crypto has been extremely handy as fans could buy or trade team tokens on exchanges. FC Barcelona, for example, held a vote on the choice of motivational artwork that would be used in the dressing room at Camp Nou. At the same time, Juventus allowed fans to choose the celebration song that would be played whenever the team scored.

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Similarly, the racing world has also whole-heartedly adopted the crypto revolution. Like Crypto.com, competitors like Tezos have signed up with McLaren Racing and Red Bull Racing teams to create NFTs.

If sponsorship deals or virtual merchandise partnerships weren't enough, NASCAR racing driver Landon Cassill teamed up with crypto exchange Voyager to receive his entire compensation package in cryptocurrencies like Bitcoin and Litecoin.

The crypto industry's influence is gradually becoming mainstream as exchanges globally try to establish their presence and legitimise the industry. While regulators are going forward cautiously, crypto-based companies are opting for massive long-term strategies that include brand development, recognition, and association with other household brands. It includes sponsoring sports events, teams, public events, concerts, and much more.

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