Scuderia Ferrari exited its Crypto sponsor partnership with Velas Blockchain and chip manufacturing giant Snapdragon.
Scuderia Ferrari S.p.A. is a subsidiary of luxury Italian auto manufacturer Ferrari and the racing team that competes in Formula One racing. This team is also popularly known as “The Prancing Horse”. Scuderia has a multi-year partnership with Vela’s Blockchain and chip manufacturing giant Snapdragon.
In the latest, this company terminated its Crypto partnership to join the growing list of Formula One racing teams. So this company is no longer in the Crypto sector partnership. And it is expected that the company will face a $50 million loss with this decision.
With its latest broken partnership, Ferrari planned to increase the user’s engagement in its ecosystem through the Ferrari focussed NFTs collectibles, which were noncompliant with clauses that permitted Velas to create NFT images.
In the last few months, several companies cut their sponsor partnership & funds allocation from Crypto companies. In Nov 2022, Mercedes terminated its partnership with bankrupt Crypto exchange FTX, in which this car manufacturing company faced a loss of $15 million.
Despite the bear market situation, in the last 12 months, it has been seen that many Web3 & NFTs-based Crypto projects acted as a bridge for several multinational companies to show their interest in Crypto & blockchain industry & grab huge numbers of customers in their ecosystem.
Bankruptcy of FTX exchange
FTX was a second-ranked Crypto exchange, which was providing crypto services in several countries. Allegedly Sam Bankman-Fried (SBF), Co-founder & former CEO of FTX exchange misused the FTX customers’ funds for personal benefits, andin the first week of Nov 2022, the exchange was not able to give fund withdrawals to all the users. Finally, on 11 Nov, FTX filed for bankruptcy in a US bankruptcy court under the chapter 11 code along with 100s of its affiliated crypto companies.