News

Ferrari Joins List Of Growing Companies That Cut Ties With Crypto

Ferrari, like Mercedes, has severed ties with a cryptocurrency company.This year, Velas will not be wearing the livery of the Italian racing stable.
Published by
Ferrari Joins List Of Growing Companies That Cut Ties With Crypto

In advance of the next Formula One racing season, Ferrari has ended its collaboration with the Velas blockchain. According to reports, Scuderia Ferrari refused to follow the conditions that had to be met before Velas could produce NFTs for the business. Ferrari’s suspension of its blockchain partnership has resulted in losses of about $55 million.

Short-term deal

The Velas branding that was on the F1-75 car will soon be removed. The reason for this ‘mutual decision,’ as far as Ferrari’s partnership with Qualcomm’s Snapdragon is concerned, is reportedly still unknown.

The chipmaker provided Ferrari with technical support while also paying Ferrari $30 million to promote the business. The environment has changed significantly over the past year, with the value of cryptocurrencies and blockchains declining significantly. This partnership may have ended because of a significant decline in the market value of Velas, as indicated by Coinmarketcap.

However, it was an effort to find new ways to connect with their fans, high-end automakers like Ferrari have also tapped into the blockchain and NFTs industries.

Also Read: 5 Best Metaverse Games To Enjoy This Winter

Advertisement

Ferrari and other Companies That Cut Ties With Crypto After FTX Collapse

Mercedes joined the cryptocurrency bandwagon after signing a sponsorship agreement with the FTX cryptocurrency exchange in September 2021. The FTX exchange went under last year, and as a result, the partnership automatically broke up and filed for bankruptcy.

Tezos Foundation’s decision not to renew their agreement in December 2022, citing changes in its “strategical priorities.” However, it caused Red Bull Racing’s partnership with them to fall apart in the midst of the ongoing decline of the entire crypto market. The majority of the F1 grid had some kind of cryptocurrency sponsorship or agreement last year. This is still the case, but the trend appears to be clearly going in one direction.

After the FTX collapse, there are still signs of stress in the cryptocurrency industry, as lender Amber Group also going to end its sponsorship deal with English soccer powerhouse Chelsea. As Chelsea’s official sleeve sponsor, Amber agreed to pay WhaleFin, its flagship cryptocurrency exchange, $25 million in March.

Also Read: What is NFTs Rarity? Why Is Rarity Important For NFTs?

Advertisement

Share
Coingapestaff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Altcoin News
  • News

XRP News: Ripple-Backed Evernorth Amasses Over $1B in XRP Ahead of Nasdaq Listing

In a major XRP news today, Ripple-backed digital asset treasury firm Evernorth has expanded its…

October 27, 2025
  • Bitcoin News

Crypto Market Rally: BTC, ETH, SOL, DOGE Jump 3-7% as US China Trade Talks Progress

Today's crypto market rally comes on the positive progress in the US-China trade talks, with…

October 27, 2025
  • News

Indian Court Declares XRP as Property in WazirX Hack Case

In a landmark ruling, the Madras High Court in India has declared that XRP and…

October 27, 2025
  • News

Ethereum Supercycle Strengthens as SharpLink Gaming Withdraws $78.3M in ETH

Ethereum’s fundamentals continue to strengthen as major investors and analysts signal renewed confidence in the…

October 27, 2025
  • News

Trump Tariffs: Secretary Bessent Declares ‘Fantastic’ Trump–Xi Talks, Bitcoin Breaks $113,000

Bitcoin (BTC) has climbed above $113,000 as optimism grew ahead of President Donald Trump’s meeting…

October 26, 2025
  • News

Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?

Bitcoin traders are turning their attention to this week’s Federal Open Market Committee (FOMC) meeting.…

October 26, 2025