Formula 1 announced on Tuesday the signing of Crypto.com, a new crypto platform, as a Global Partner and Inaugural partner of the new Sprint series for 2021.
Established in 2016, Crypto.com is a cryptocurrency and payment platform with a goal to promote the widespread adoption of cryptocurrencies.
As part of the partnership with the sport, Crypto.com will have a trackside presence at every race for the remainder of the 2021 season, as well as branding a new F1 award and developing exclusive NFTs (Non-Fungible Tokens).
Crypto.com has also been selected as the lead partner of the new Formula 1 Sprint series, a new qualifying format set to be inaugurated during the 2021 British Grand Prix in Silverstone.
Crypto.com joined Formula 1 earlier in the year as it associated with the newly-rebranded Aston Martin team in a multi-year deal, but it isn’t the first cryptocurrency sponsor to be seen.
The rise in crypto money
The introduction of decentralised currencies online and the establishment of blockchain technology has impacted the global economy on a large scale. As such, its momentum has enabled the sector to invest in all sorts of sports, including motorsport.
Red Bull Racing were the first to partner with a cryptocurrency, FuturoCoin, back in 2019, while announced as a multi-year deal, the partnership quickly dissolved after allegations of fraud surfaced.
Since then, a total of 5 different crypto companies have marked their spots in Formula 1 with teams such as Red Bull, McLaren and Alfa Romeo, representing a large interest in motorsport.
Formula 1 and blockchain technology have one thing in common – being the leading edge of technological development – essentially, crypto brands aligning with the sport goes beyond just growing brand awareness.
Naturally, crypto companies are looking to get the best impression from potential new customers and business partners against their competitors.
This is seen in the contrasting examples of Tezos and Socios.com, who signed with two teams thus increasing brand presence, and Crypto.com, who signed with a team and the sport as a whole.
The more exposure the merrier
A source disclosed to Decalspotters that, as Crypto.com settled the partnership activation with Aston Martin F1, it appeared that the company was not entirely happy with its brand’s visibility across the team’s assets.
Considering Aston Martin as a prestigious and classy brand, associating crypto alongside would be good for the company, but another problem soon emerged.
Aston Martin’s F1 team is not directly associated with the car manufacturer despite the same ownership between both parties. This caused Crypto.com to seek for more opportunities.
According to the source, Crypto.com were discussing with Formula 1 for a potential partnership as early as March. Both parties agreed to the terms in June.
It’s not the first nor the last time that a sponsor searches to increase their visibility in motorsport – during the year, BWT signed with Formula 1 and with Mercedes-AMG’s Customer Racing Teams in ADAC GT Masters to further grow their presence after losing its iconic pink livery to Aston Martin’s dark-green branding.