Scuderia Ferrari, the racing division of luxury carmaker Ferrari, has ended its partnerships with Velas Blockchain and Snapdragon, resulting in a loss of $55 million for the team ahead of the 2023 Formula One season.
The partnership with Velas, worth $30 million per year, was intended to increase fan engagement through the use of non-fungible tokens (NFTs) and other shared initiatives.
However, the team reportedly failed to meet the clauses that allowed Velas to create NFT images.
Mercedes also suffered a loss of $15 million in November 2022 after ending its partnership with FTX, which filed for Chapter 11 bankruptcy.
Red Bull Racing’s partnership with the Tezos Foundation also ended, with the blockchain company citing strategy misalignment as the reason for not renewing the agreement.
Formula One has also announced plans to set up an online marketplace for cryptocurrency, meta tokens, digital collectibles, and NFTs.