Despite the exodus of crypto sponsorship following last year’s high-profile debacle, Formula 1 teams may once again be keen on crypto advertising. On March 28, American cryptocurrency exchange Kraken announced a new sponsorship and Web3 deal with the Williams Racing F1 team. The move marks the first major cryptocurrency firm to strike a new deal with Formula 1 this year.
The deal involves not only putting Kraken branding on the Williams cars, but also branded team merchandise and non-fungible tokens (NFTs) for team fans to collect. The rear wing of the car will also feature KrakenNFT customer-owned digital collectible artwork from leading third-party NFT projects in select competitions.
James Bower, Williams Racing Commercial Director, said: "We are excited to enter into a partnership that will provide our fans with a cutting-edge crypto and Web3 experience, while also enabling Kraken to reach new institutional clients and businesses through our network and events. " When things started to melt in late 2022, several Formula 1 teams quickly walked away from their cryptocurrency sponsorship deals. In mid-November, the Mercedes F1 team suspended a roughly $27 million deal with the troubled FTX exchange.
Additionally, Ferrari abruptly terminated its long-term agreement with Swiss blockchain organization Velas in January. Alfa Romeo dropped sponsor Vauld last year after running into trouble with crypto lenders. In September, Singapore suspended cryptocurrency advertising around race tracks but allowed it to remain on cars. Other countries, including France, also imposed restrictions on encrypted trackside ads last year, forcing some teams to remove them.
However, some sponsorship deals remain. The Aston Martin team retained its cryptocurrency sponsors Crypto.com and Socios. According to reports earlier this month, Binance remains a partner of the Alpine team, and OKX and Tezos remain with the McLaren team. Meanwhile, Red Bull Racing retained its cryptocurrency sponsor Bybit, while OpenSea remained with Haas. Kraken’s deal with Williams Racing could be the start of the crypto firm’s return to racing and sports in 2023 as the market recovers.
