For the 2023 Formula One season, Ferrari has declared that it will no longer work with a cryptocurrency company. Prior to the new season, the Italian luxury sports car manufacturer decided to sever its relationship with the aforementioned cryptocurrency sponsor. In a statement, Ferrari claimed that the choice was made as part of the organization’s efforts to concentrate on its core business and separate itself from any association with the erratic and volatile cryptocurrency market.
Ferrari has a long history of successful collaborations with sponsors in the luxury goods and automotive sectors, and the company is looking to carry on this tradition by concentrating on alliances that are consistent with its brand reputation and values.
Ferrari Would Walk Away From Crypto?
Ferrari made a wise choice to distance itself from the cryptocurrency market, even though some may find the end of the partnership with the crypto sponsor disappointing. Ferrari is able to safeguard its reputation and brand by severing ties with the cryptocurrency sponsor due to cryptocurrencies’ extreme volatility and unpredictability. Mercedes also suffered a $15 million loss in November when it decided to sever ties with FTX as the latter filed for Chapter 11 bankruptcy. A similar fate befell Red Bull Racing’s alliance with the Tezos Foundation after the blockchain platform reportedly decided not to renew its contract due to strategy misalignment.
Ferrari has yet to decide on a sponsor for the 2023 Formula One season, but the team is certain to pick a company that shares its values and complements its overall brand image. Fans of the venerable sports car manufacturer can anticipate seeing its svelte cars compete in the meantime. However, there are more than just partnerships between F1 and the crypto ecosystem. As it revealed plans to launch an online marketplace for cryptocurrencies, meta tokens, digital collectables, crypto-collectables, and NFTs in October, Formula One filed trademark applications for the “F1” moniker.
