Bitcoin falls again 0:53
New York (CNN Business) --
What cryptocurrency crisis?
Bitcoin prices may be crashing, but you wouldn't imagine it while watching the cars of the super popular Formula 1 race circuit. F1 is crazy about cryptocurrencies.
Eight of the 10 teams competing in the high-profile international series have a crypto-related sponsor.
F1 has received a huge audience boost in recent years thanks, in part, to Netflix's popular reality show "Drive to Survive."
Max Verstappen leads Red Bull 1-2 at dramatic Spanish Grand Prix and overtakes Charles Leclerc in F1 title chase
Crypto.com, one of the major exchanges, has a multi-year naming rights deal for the F1 race in Miami, which was held earlier this month.
Crypto.com is also a partner of the Aston Martin F1 team.
F1's top two teams so far this season, Red Bull and Ferrari, have announced new crypto-related sponsorship deals in recent months.
Ferrari is working with blockchain firm Velas, while Red Bull has a deal with cryptocurrency exchange Bybit.
Other leading F1 teams are also making the leap into cryptocurrencies.
McLaren has a long-term deal with OKX that makes the cryptocurrency exchange the team's main sponsor partner.
"We're not just putting our logo on McLaren cars. We're helping Mclaren with NFTs and the metaverse," said Haider Rafique, OKX's global director of marketing, in an interview with CNN Business.
advertising
OKX is the only cryptocurrency company that acts as the main sponsor of an F1 team.
That means its logo is displayed more prominently on the racing cars and suits of McLaren drivers Lando Norris and Daniel Ricciardo.
“Cryptocurrency is a massive industry. It is clear that it is here to stay and is a huge part of the economic future,” McLaren Racing CEO Zak Brown said.
“Cryptocurrency fans are savvy, tech-focused consumers.”
What are cryptocurrencies and what are their advantages and disadvantages?
An expert explains
Younger riders and fans are big supporters of cryptocurrencies
Brown said the collaboration between McLaren and OKX is going well because many of the new and younger F1 fans who have embraced the sport after watching "Drive to Survive" are also interested in cryptocurrencies.
The rise of Netflix for F1 has clearly drawn the attention of other crypto companies.
“There has been an exponential increase in interest in the sport. I got involved with Netflix F1, so it was an easy decision for us to get involved with a team,” said Lou Frangella, Vice President of Partnerships for FTX US.
FTX, a major cryptocurrency brokerage that is currently valued at $32 billion, signed a deal with Mercedes last year.
Frangella said FTX, which also has an arena sponsorship deal with the NBA's Miami Heat, is looking to make a name for itself with younger consumers.
On the occasion of the Miami F1 race, FTX auctioned off NFT works of art that appeared in the cars of drivers Lewis Hamilton and George Russell.
FTX also created limited edition race ticket stubs in the form of NFTs, designed by NFT artist Mad Dog Jones.
Jones previously designed a helmet for Hamilton, a seven-time F1 champion.
"We try to make partnerships fun and engaging," Frangella said.
Concerns about excessive spending and the environmental impact of cryptocurrencies
However, cryptocurrency over-sponsorship could end badly, as it did for many now-defunct dot-com companies that spent heavily on Super Bowl ads and stadium naming rights deals late in the year. the 90s and early 2000s.
OKX's Rafique said the recent volatility in cryptocurrencies was to be expected, given how new the asset class is compared to stocks, bonds and commodities.
He also pointed out that stocks have not been a safe haven this year.
“Equities are also taking a hit. We are taking a long-term view,” he said, noting that McLaren has not expressed any concerns about falling crypto prices since announcing their partnership.
Cryptocurrencies and their massive energy consumption, at the heart of the debate
McLaren's Brown added that he is "quite fascinated and excited about cryptocurrencies" and that he has personally invested in a diversified portfolio of cryptocurrencies.
Pilots Norris and Ricciardo are also supporters of cryptocurrencies, Brown said.
The environmental impact of energy-intensive cryptocurrency mining remains a concern.
Some pilots have already begun to openly question the impact on the planet of flying around the world to drive gas-guzzling race cars.
Aston Martin's Sebastian Vettel, a four-time F1 champion, recently spoke of booking him due to concerns over climate change.
FTX's Frangella acknowledged that there are legitimate issues around cryptocurrency mining and the sport of racing and the environment.
F1 has previously said it hopes to be a carbon neutral sport by 2030.
"Sustainability is important to us and we are all looking to improve," Frangella said.
"From a crypto point of view, we are very aware of it and we have these discussions with the Mercedes team.
We hope that people will be satisfied with the improvements for years to come."
BitcoinFormula 1
