Kraken, a prominent American cryptocurrency exchange, has recently announced a partnership deal with the Williams Racing F1 team, marking the first significant crypto return to Formula 1 this year. The deal includes branding of Kraken on Williams race cars, as well as NFTs for fans to collect and branded team merchandise. Moreover, the KrakenNFT customer-owned digital collectibles will be featured on the car’s rear wing during select races. The announcement comes after several Formula 1 racing teams dropped their crypto sponsorship deals in late 2022.
The Williams Racing commercial director James Bower said that they are excited to offer their fans cutting-edge crypto and Web3 experiences through the partnership while allowing Kraken to reach new institutional clients and businesses through their network and events.
Crypto Sponsorship Exodus in Formula 1 Racing
Formula 1 teams have been cautious about crypto advertising after last year’s high-profile meltdowns. The Mercedes F1 team suspended its partnership agreement with the FTX exchange, worth an estimated $27 million, while Ferrari ended its long-term arrangement with the Swiss blockchain organization Velas in January. In addition, Alfa Romeo dropped its sponsor, Vauld, following troubles at the crypto lender last year.
Several countries, including Singapore and France, placed restrictions on trackside crypto commercials last year, forcing some teams to remove them. However, some sponsorship deals have remained, with the Aston Martin team retaining its crypto sponsors Crypto.com and Socios, and Binance remaining the partner of the Alpine team. OKX and Tezos are still with McLaren Racing, and the Red Bull racing team has retained its crypto sponsor Bybit, while OpenSea is still with Haas.
Kraken’s F1 Sponsorship Deal and Its Implications
Kraken’s partnership with Williams Racing could signify a return of crypto companies to racing and sports in 2023, as markets recover. This deal shows that crypto companies are becoming more confident in their advertising strategies and the ability of the sports industry to adopt crypto and blockchain technology. It also highlights the potential of NFTs in sports and their ability to offer fans unique experiences and collectibles.
Kraken’s sponsorship deal is not only about branding but also about showcasing the benefits of Web3 technology. The partnership enables Kraken to reach new institutional clients and businesses through Williams Racing’s network and events. This shows that crypto companies are not only looking to attract retail customers but also institutional clients.
Moreover, the deal offers Williams Racing access to cutting-edge crypto and Web3 experiences, which could enhance the team’s brand and fan engagement. The use of NFTs could provide a unique and personalized experience for fans, making them feel closer to the team and increasing loyalty.
The Future of Crypto Sponsorship in Sports
Kraken’s partnership with Williams Racing could be the start of a new era of crypto sponsorships in sports. As crypto and blockchain technology continues to grow, sports teams and organizations are likely to embrace it, creating opportunities for crypto companies to partner with them.
The benefits of crypto and blockchain technology in sports are numerous, including increased transparency and fan engagement, new revenue streams, and improved security. With the continued growth of the crypto industry and the adoption of blockchain technology, it is likely that we will see more crypto companies partnering with sports teams and organizations in the coming years.
Conclusion
Kraken’s partnership with Williams Racing is a significant development for crypto advertising in sports, particularly in Formula 1 racing. The deal showcases the potential of NFTs in sports and highlights the benefits of Web3 technology for both crypto companies and sports teams. As the crypto industry continues to recover, we can expect to see more crypto companies partnering with sports teams and organizations in the future.
