The Formula 1 racing sports is heavily sponsored by the biggest brands in the world in an attempt to get a shoe into the cream of the top portion of the consumer markets. Naturally, the popularity of cryptocurrencies among race enthusiasts has kept increasing. However, there are still a considerable amount of countries that do not have a very accepting relationship with disruptive technology products.
Among these countries is France, where the regulations concerning cryptocurrencies are less than friendly. Considering the strong advertisement laws in the region, the county has a strong antagonistic stance on crypto-related ads. To this end, the F1 teams that are competing in the region are directed to hide or remove the cryptocurrency advertisements during the Grand Prix.
According to a coverage article published by RacingNews365, two out of ten teams that were participating in the Grand Prix have partnerships with cryptocurrency organizations. However, a closer inspection suggests that during the racing event, more than one partner in the team was seen as having a sponsorship contract backed by a cryptocurrency organization.
Cryptocurrency lending platform Vauld partnered with the Alfa Romeo team. Meme currency Floki Inu backed the Red Bull Racing event in association with Tezos and ByBit exchange. Tezos also placed its bets and ads on the McLaren drivers. There were also many more sponsors, such as Crypto.com.
Crypto Endorsement Deals and Sponsorship Contracts
Crypto.com, which is known for its active interest in sports activities and lavish sponsorships, also powered F1 events and backed the F1 star Aston Martin, which was also powered by the same cryptocurrency platform.
The management of the cryptocurrency exchange claimed that the brand acquired all the legal rights for marketing its product during the race. The financial regulators in Ireland are also working on making some important changes to cryptocurrency advertisement options.
However, the exchange platform claimed that it has continued to remain the global partner of the F1 racing events and plans to leverage its sponsorship investment using alternative methods in the future.
The Grand Prix race in Austria was backed by Crypto DATA Tech, which works on developing hardware and software related to cryptocurrency trading. In addition to France, crypto advertisement laws are also strict in Hong Kong, which can result in a $50K fine and six months of jail time for violations.