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Formula 1 Secures $100 Million Sponsorship Deal with Crypto.com

Formula 1 Secures $100 Million Sponsorship Deal with Crypto.com
(Photo by Dan Istitene – Formula 1/Formula 1 via Getty Images)

Formula 1 Has A New Sponsor

The international motor racing organization Formula 1 has a new sponsor from the cryptocurrency industry. The long-term collaboration will give a digital asset trading platform a presence at F1 events. At the same time, the automobile championship aims to “explore the world of cryptocurrency” as a result of the partnership.

Contract Between Formula 1 and Crypto.com

The sports agency Creative Artists Agency assisted in the contract between Formula 1 and Crypto.com, revealed on Tuesday. They did not release any specifics immediately, however citing sources familiar with the details, CNBC reported that the five-year deal is for more than $100 million.

Crypto.com, which claims to have ten million users, subsequently will be a global partner for Formula 1 races. Some races will use the qualifying format to decide starting places. The first such session takes place in July at Silverstone Circuit ahead of the F1 Pirelli British Grand Prix 2021. This year, Sprint Qualifying will make its debut at three Grands Prix.

Crypto.com Will Become A NFT Partner

In August, the crypto firm will debut a new award and become a non-fungible token (NFT) partner during the Belgian Grand Prix. As part of the deal, Crypto.com will have trackside seats at all F1 races for the rest of the season.

F1 Director’s Comment

F1 Director of Commercial Partnerships Ben Pincus leaves his comments on the agreement, saying that the racing organization plans to leverage Crypto.com’s knowledge “as we explore the world of cryptocurrencies, an area we are extremely interested in.”

Not Crypto.com’s First Sports Sponsorship

Crypto.com stated in a press release on its website that this is not its first sponsorship in sports. The platform, which allows users to buy and trade cryptocurrencies, also had a relationship with Formula One team Aston Martin Cognizant Formula One, who used NFTs to celebrate their comeback to the sport. It’s also a sponsor of the NHL’s Montreal Canadiens and the Lega Serie A, Italy’s top soccer league.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.