- Ferrari NV’s Formula One Team and blockchain company Velas Network AG ended its ties
- The multi-year agreement with Velas to create digital content for its community ends with no explanation.
- Amber Group and Chelsea football one among the many companies breached agreements.
The contract between Ferrari NV’s Formula One Team and the blockchain technology company Velas Network AG reportedly has come to an end, amidst the increasingly crumbling pacts between sports companies and cryptocurrency sectors.
Previously, in December 2021, the luxury sports car maker signed a multi-year agreement with Velas with the intention to create digital content for its community.
In the agreement, the company stated:
In addition, Velas will be the Title Sponsor of the Ferrari Esports Series, the online mono-brand series of the Prancing Horse, and of the Esports team that will compete in the F1 Esports Series, the official digital championship competed in by all teams participating in the FIA Formula 1 World Championship.
However, without revealing many details, the agreement had an “abrupt end”- “unfortunately, the agreement with Velas has been terminated early by us”, stated the Ferrari team.
Furthermore, Ferrari expressed its refusal for any further explanation by stating “comment on matters that are the subject of a dispute and/or litigation”.
Interestingly, crypto companies were highly attracted to motorsports car companies, which resulted in a number of contracts between the sectors. For instance, the fallen crypto firm FTX had been a sponsor to the NBA’s Miami Heat as well as the Mercedes Formula 1 team.
Significantly, the termination of Ferrari- Velas contract is not the first case in a series of such failures. By the end of last year, the crypto company Amber Group terminated its connection with the English Club Chelsa FC.
With the present failure of the Ferrari- Velas deal taken into consideration, the crypto-sports contracts have been exhibiting a long series of failures, mostly because of the ruined conditions of the crypto sectors.
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Source: https://coinedition.com/an-abrupt-end-to-ferrari-nv-velas-network-deal-reports-bloomberg/