Mercedes seems almost certain to lose one of its sponsors – FTX – as the Crypto Exchange company faces financial doom.
Crypto exchange FTX has seen investors withdraw more than $6 billion in the last three days, with the company now facing bankruptcy.
While the situation is still developing, all indications are that FTX may be on the move – with the CEO admitting on social media that the situation is grim.
Looking back on his relationship with Mercedes and Formula 1, it seems unlikely that this development will affect the team.
There is no doubt that losing a sponsor is inconvenient, but a team the size of Mercedes will almost certainly have made sure that they have received sponsorship payments.
Even if it’s not like that, the German squad has more than enough financial muscle to make up for the loss of one sponsor.
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F1’s budget constraints have made the sport more profitable, with titans such as Mercedes significantly reducing spending from previous seasons.
Considering the partners already used by Mercedes, this development will hardly be a bump in the road.
Still, this news raises questions about the longevity of crypto sponsorship in Formula 1.
Haas recently announced its own partnership with the NFT group, meaning that almost every team on the grid now has an NFT/Crypto sponsor.
The pending collapse of FTX shows how volatile the crypto space has proven to be, so there is no guarantee of the viability of crypto sponsorship in F1 in the long term.
Despite this, the team seems willing to take risks in return for cash, which is ultimately an important aspect of running a Formula 1 team.
The NFT world may be slowly collapsing, but it will take more time before teams decide not to make deals with crypto companies.
There are many options beyond crypto, but providing sponsorship payments are made first, the world of F1 seems relatively unphased by the unpredictability of crypto.