Ferrari Terminates Sponsorship Contract With Velas Blockchain
Automobile manufacturer Ferrari suffers a loss of more than $50 million after terminating a contract with Velas blockchain.
The source of the dispute is said to be the Ferrari team’s dissatisfaction with the provision made for Velas blockchain to produce NFTs.
Automobile Companies And Cryptocurrency Deals
Ferrari has terminated its contract with Velas blockchain, joining an increasing list of automobile manufacturers that have done so previously.
The automobile manufacturer lost approximately $55 million as a result of this termination.
This collaboration between the automobile manufacturer and the Velas cryptocurrency blockchain began in 2021.
This collaboration aimed to increase fan interest in the use of NFTs and other projects that the blockchain corporation had to offer.
However, a racing media outlet revealed to the public that Ferrari was opposed to the provision allowing this block chain firm to make NFTs.
Another automobile manufacturer terminated connections with its cryptocurrency sponsor before the end of 2022. During the FTX meltdown and crisis in November, Mercedes, an automobile manufacturing firm, severed connections with FTX when it filed for bankruptcy.
This contract termination cost Mercedes more than $10 million.
Tezos Foundation also collaborated with an automobile company, Red Bull Racing, but terminated its deal with the car company because it was dissatisfied with certain terms of the arrangement.
The Mercedez Chief executive officer remarked about the collaboration between automobile firms and the cryptocurrency sector.
He voiced concern about existing partnerships that had not been terminated, indicating that they would suffer the same fate.
However, the ties between these automobile companies or more specifically Formula one racing cars and the cryptocurrency sector runs deeper than just collaborations.
Formula One previously stated its intention to develop an online marketplace for cryptocurrency, non-fungible tokens, digital collectibles, and a few more crypto sectors in 2022.
The trademark ‘F1’ was intended for these marketplace products.
Web3 Permeating All Sectors
Web3 is gradually penetrating various industries, including entertainment, sports, and automobiles, to name a few.
Most web3 projects are now focusing on developing strong relationships with the sports industry and gaining access to their enormous fan base in order to market their products. NFT businesses have approached celebrities such as Ronaldo to make NFTs that fans will love to have.
According to a sports analyst, he indicated that the integration of the virtual and physical worlds will accelerate, and marketplaces for NFT will acquire a lot of traction from all over the world and expand their technology.
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