Ferrari has ended its partnerships with crypto sponsors Velas Blockchain and chip-maker Snapdragon, incurring a cumulative loss of $55 million. The partnership with Velas, worth $30 million per year, aimed to increase fan engagement through non-fungible tokens (NFTs) and other shared initiatives. However, RacingNews365 reports that the team did not comply with clauses allowing Velas to create NFT images.

In November, Mercedes also suffered a $15 million loss after suspending its partnership with cryptocurrency exchange FTX, which filed for bankruptcy. Red Bull Racing's partnership with the Tezos Foundation also suffered a similar fate, as the blockchain platform decided not to renew its agreement. Toto Wolff, Team Principal and CEO of Mercedes-AMG Petronas F1 Team, warned that other teams may find themselves in a similar situation.

Velas Blockchain, a cryptocurrency platform that uses artificial intelligence to improve transaction speeds, was hoping to use the partnership with Ferrari to increase its brand visibility and user base. The company has not commented on the termination of the partnership.

Snapdragon, a subsidiary of Qualcomm, has also ended its partnership with Ferrari. The chip-maker was hoping to use the partnership to showcase its capabilities in the automotive industry and attract new customers.

However, the relationship between F1 and cryptocurrencies goes beyond individual team partnerships: in October, F1 revealed plans to create an online marketplace for cryptocurrencies, meta tokens, digital collectibles, and NFTs. Despite the bear market, Web3 projects have continued to forge ahead in their aim to strengthen the relationship between fans and sports leagues.

Deloitte's "2022 Sports Industry Outlook" report predicts acceleration in the merger of the physical and digital worlds, as well as rapid growth in NFTs and immersive technologies. However, the lack of user-friendly platforms remains a major challenge for mainstream adoption.

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