Cryptocurrency continues to be a massive talking point in not just Formula 1 but world sport, with crypto sponsorship specifically cropping up pretty much everywhere.
Despite the unstable nature of the crypto market, as Mercedes discovered firsthand, teams from all corners of the globe continue to enter partnerships with crypto companies.
It’s not just teams, though, with individual athletes also entering partnerships with various crypto sites.
Portuguese footballer Cristiano Ronaldo recently partnered with Binance, with the legendary player actually sharing his crypto and NFT journey through his social media.
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How long these partnerships between teams and various crypto companies go on for is a complete unknown, with Mercedes’ deal with FTX having come to a dramatic end.
Mercedes team principal Toto Wolff is a known supporter of cryptocurrency, with the Austrian perhaps being one of the most knowledgeable about the topic in the F1 paddock.
Even he, though, couldn’t predict the sudden demise of FTX, whose value plummeted in rapid fashion.
FTX went from being one of the most solid companies in the crypto world, to being bankrupt in a flash, which resulted in Mercedes dropping their logos from all clothing and equipment.
With that in mind, Wolff has warned Formula 1 that they too could suddenly be a victim of a crash in the crypto market, with almost every team having a partner.
“Every team has sponsors like that and so does the Formula 1 organisation,” Wolff told Speed Week.
Seven teams in F1 have crypto sponsors: Ferrari are partnered with Velas, Alpine are with Binance, Red Bull are in a deal with Bybit, Floki sponsor Alfa Romeo, Fantom are partnered with AlphaTauri, McLaren are with Tezos, and Aston Martin are with Crypto.com.
Incredibly, Crypto.com are also a global sponsor of Formula 1, meaning a sudden crash would affect both the sport and the Silverstone-based team.
With that in mind, Wolff has admitted that if the crypto market were to crash, the sport would be in huge trouble.
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“Everyone would be affected,” the Mercedes boss said, when asked what would happen if the entire crypto market collapsed.
“FTX was considered a solid company whose bankruptcy is a huge damper not only for us but for the entire crypto industry,” said the Austrian.
“This bankruptcy with a deficit of $8 billion shows how uncontrolled the entire industry is.”