Ethereum is looking to follow other crypto companies into the Formula 1 sponsorship scene, a source at the Switzerland-based firm has exclusively revealed to Formula1News.co.uk.
The open-source blockchain company, which has its own token – Ether (ETH) – is in “active discussions” with at least one F1 team regarding a sponsorship deal that is likely to commence in 2022.
The source didn’t divulge any further details at this time, and all teams approached by Formula1News.co.uk declined to comment on the matter.
Growing Crypto-F1 Partnership
These reports of Ethereum considering sponsoring an F1 team come hot on the heels of the sport announcing a new overtake award in partnership Crypto.com.
The new accolade, which was announced on Tuesday, will be awarded to the driver who completes the most overtakes over the course of a season.
“The award, which is the first of its kind, is designed to celebrate the bravery exhibited by drivers who make bold moves in pursuit of success,” Formula 1 said in a statement circulated earlier this week.
Meanwhile, Ben Pincus, director of commercial partnerships at Formula 1, said that they are “delighted to be expanding our partnership with Crypto.com as we introduce the Overtake Award which will integrate the brand into Formula 1 throughout the season, in addition to the title partnership of the F1 Sprint Events.”
Continuing, he said: “The Crypto.com Overtake Award gives us the chance to celebrate drivers’ instincts to make bold and strategic moves which reflects the qualities needed when dealing in cryptocurrency.”
Numerous crypto and blockchain companies have entered Formula 1 in the last 12 or so months, but Crypto.com is by far the biggest crypto spender in the sport.
In addition to sponsoring Aston Martin, Crypto.com is the inaugural global partner of Formula 1’s new Sprint series and they have also been spending millions of dollars on circuit banners and other advertisements.
Other crypto companies that have entered Formula 1 as sponsors include the likes of Tezos, which sponsors both Red Bull and McLaren, and Bitci.
What Do These Companies Do Exactly?
Most of the crypto companies that have entered Formula 1 fall into one of two categories: they are either an exchange or an open-source blockchain.
For example, Crypto.com and Bitci are crypto exchanges, allowing users to swap different cryptocurrencies or deposit fiat money and use that to buy crypto.
On the other hand, Ethereum and Tezos are decentralised open-source blockchains, allowing users to execute peer-to-peer crypto transactions.
Both of these blockchains have smart contracts capabilities, and each has its own token.
Specifically, Ethereum’s native token is Ether (ETH), while Tezos’ token shares the same moniker as its blockchain.