Saturday, September 23, 2023
99newser
  • Home
  • World News
  • Celebrity News
  • Taxi Rides
  • Online Jobs
  • Health News Updates
No Result
View All Result
99newser
  • Home
  • World News
  • Celebrity News
  • Taxi Rides
  • Online Jobs
  • Health News Updates
No Result
View All Result
99newser
No Result
View All Result

Crypto industry’s hold on Formula 1 sponsoring under pressure in Singapore

Editorial Team by Editorial Team
October 2, 2022
in Uncategorized
0
Crypto industry’s hold on Formula 1 sponsoring under pressure in Singapore
586
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

At Formula One’s Miami Grand Prix in May, the displays of cryptocurrency companies sponsoring the sport were inescapable, with Crypto.com’s blue branding covering every imaginable surface along the racetrack.

When Singapore hosts the most popular motor sport this weekend, the visibility of digital assets will be far more subdued.

You might also like

The best '90s thrillers according to NPR's Pop Culture Happy Hour – 90.5 WESA

What Is "pinterestcore" And How Do You Wear It? – Preview

Netanyahu says Israel is getting closer to ‘quantum leap’ normalization deal with Saudi Arabia – CNN

The Monetary Authority of Singapore will let teams show their cryptocurrency sponsors’ logos only on cars and uniforms at the Singapore Grand Prix, but no advertising will be permitted around the track or in the local area.

The shift underscores the changing mood around cryptocurrency, both from a regulatory and a financial standpoint.

Jurisdictions in Singapore, the UK and France have intensified scrutiny this year after digital asset prices soured, billion-dollar projects collapsed and major market players went bankrupt.

As a result, F1’s newest throng of advertisers are finding ways to make their mark without moving too boldly.

The rout in cryptocurrencies in recent months, which has wiped out around $2 trillion in value since November, has left cryptocurrency brands more cash-strapped but still keen to maintain what they have already invested to keep a foothold on the world stage.

Jeremy Walls, a senior executive for the Miami venue who helped to close the deal with Crypto.com, said that current market dynamics may make cryptocurrency companies “be a little more thorough and thoughtful” about the deals they sign going forward.

“I’m still seeing people doing crypto partnerships now, it’s just maybe not the pace that it once was,” Mr Walls said.

Partnering with an F1 team has turned into a status symbol for cryptocurrency companies, a flashy multi-million-dollar accessory that signals affluence and success at a time when market prices reflect the opposite.

Around 80 per cent of F1 teams have at least one cryptocurrency partner, in addition to Formula One Group itself, which has its own $100 million deal with Crypto.com.

Zak Brown, head of McLaren Racing, said that F1 teams “don’t want to get left behind” when a new sponsor or trend emerges.

McLaren signed a five-year deal worth hundreds of millions of dollars with cryptocurrency exchange OKX in May and will debut a special cryptocurrency-themed car for the circuits in Singapore and Japan in compliance with the stricter advertising guidance.

Rob Bloom, chief marketing officer at Aston Martin Lagonda Global Holdings’s F1 team, said the need to alter sponsor branding to suit different locations is par for the course in the sport.

Certain locations require bans on alcohol or tobacco marketing, for example, where companies like Philip Morris International historically showed the shape or coloured branding of their cigarettes without actually displaying a logo.

Aside from emblazoned logos across drivers’ uniforms and cars, F1 teams are also getting into cryptocurrency themselves. Several now offer fan tokens — team-specific cryptocurrency assets that can be earned, traded and used to pay for experiences or rewards — and non-fungible tokens assigned to individual car parts.

What makes F1 a promising proposition for sponsors is the sport’s global and loyal audience. Next year’s competition is expected to reach a record of 24 races in 21 countries, held over the course of nine months.

Cryptocurrencies – in pictures

The crypto market, which includes currencies such as Bitcoin, pictured, has lost $2 trillion of its value in six months. Unsplash

Fans are also typically wealthier thanks to the sport’s high cost of entry, where tickets start at hundreds of dollars and TV channels pay high fees for exclusive broadcasting rights.

Whether cryptocurrency companies will be able to keep up the pace of deal-making in sports remains unclear, with waning demand for digital assets now taking its toll.

Crypto.com and Bybit were among several major companies to lay off staff earlier this year, while the likes of FTX opt to value their F1 partnerships on an annual basis, according to Avi Dabir, the exchange’s vice president for business development.

Since signing with Mercedes, Mr Dabir said FTX had seen a “noticeable” increase in new customers, as well as more interest from existing clients who want to take advantage of access to F1 races.

McLaren also had a previous cryptocurrency partner in Turkish exchange Bitci.com, which at the time was the first to run a fan token for an F1 team.

The deal was quietly wound up in February after less than a year, Bloomberg reported at the time, along with two other Bitci.com deals with European football clubs after it failed to make payments to certain partners.

“That was one that we jumped into pretty quickly,” Mr Brown said. “You need to do your homework to understand” a cryptocurrency deal. As a result, the subsequent partnership with OKX was scrutinised by a 15-person external advisory board, he said.

Due diligence has become even more important this year amid a spate of major cryptocurrency collapses, in addition to rising regulation.

McLaren is now exploring a new fan token with OKX, which it hopes to launch in 2023 after taking its time to ensure “really robust” development, the team’s director of licensing, e-commerce, e-sports and gaming, Lindsey Eckhouse said.

Despite racing team sponsorships typically being more expensive than other sports, Crypto.com chief marketing officer Steven Kalifowitz said its F1 deals were among the first that the exchange made.

“I was really looking for ways to meet a global audience and meet them quickly,” Mr Kalifowitz said. “F1 really delivers on that in a way I don’t think really any other sport does.”

But with cryptocurrency hovering around yearly lows and the general economic environment signalling a potential turn for the worse, the future of F1’s multiyear deals hang in the balance.

It is typical in the sport for partners to come and go, if a sponsor suddenly cannot meet the millions of dollars required to stay in the race, said Ted Dobrzynski, president of F1 sponsorship agency VIAGP.

Updated: October 02, 2022, 3:30 AM

Source link

Previous Post

No more quarantine: Hong Kong visitors happy to find eased Covid travel rules – South China Morning Post

Next Post

6 Best Lakes for Boating in Spring

Editorial Team

Editorial Team

Related Posts

TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

The best '90s thrillers according to NPR's Pop Culture Happy Hour – 90.5 WESA

by Editorial Team
September 23, 2023
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

What Is "pinterestcore" And How Do You Wear It? – Preview

by Editorial Team
September 23, 2023
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

Netanyahu says Israel is getting closer to ‘quantum leap’ normalization deal with Saudi Arabia – CNN

by Editorial Team
September 23, 2023
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

How DJs Make Money Online: Strategies for Sustainable Income – Magnetic Magazine

by Editorial Team
September 23, 2023
Who Has the Best Anglers?

Bucket Biologists on Soda Butte Creek

by Editorial Team
September 23, 2023
Next Post

6 Best Lakes for Boating in Spring

Recommended

The Most Unexpected Breakups: Celebrity Marriages That Ended After Decades – E! NEWS

The Most Unexpected Breakups: Celebrity Marriages That Ended After Decades – E! NEWS

September 25, 2022
Ukraine warns citizens of longer power cuts after fresh Russian battering – WION

Ukraine warns citizens of longer power cuts after fresh Russian battering – WION

December 17, 2022

Categories

  • AI Chatbot App
  • Celebrity News
  • Health News Updates
  • Latest Sport News
  • Stock Market News
  • World News

Don't miss it

TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

The best '90s thrillers according to NPR's Pop Culture Happy Hour – 90.5 WESA

September 23, 2023
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

What Is "pinterestcore" And How Do You Wear It? – Preview

September 23, 2023
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

Netanyahu says Israel is getting closer to ‘quantum leap’ normalization deal with Saudi Arabia – CNN

September 23, 2023
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

How DJs Make Money Online: Strategies for Sustainable Income – Magnetic Magazine

September 23, 2023
Who Has the Best Anglers?

Bucket Biologists on Soda Butte Creek

September 23, 2023
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

10 best survival kit essentials to buy today – BBC Countryfile Magazine

September 23, 2023

Recent News

TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

The best '90s thrillers according to NPR's Pop Culture Happy Hour – 90.5 WESA

September 23, 2023
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals – ICIS

What Is "pinterestcore" And How Do You Wear It? – Preview

September 23, 2023
  • Home
  • World News
  • Celebrity News
  • Taxi Rides
  • Online Jobs
  • Health News Updates

© 2020 99newser.com

No Result
View All Result
  • Home
  • World News
  • Celebrity News
  • Taxi Rides
  • Online Jobs
  • Health News Updates

© 2020 99newser.com