Ethereum (ETH) to sponsor a Formula 1 team
Over the past year, several cryptocurrency and blockchain companies have signed sponsorship deals with Formula 1 team representatives. Ethereum also decided to sign a contract with one of the teams, trying to keep up.
New partners mean new prospects for the teams
Formula1News.co.uk reports that the Ethereum platform is actively discussing a potential deal with one of the F1 teams. If an agreement is reached, the contract will be signed next year. There are no details disclosed by the source, while the other Formula 1 participants withhold any comments.
F1 has been featured in an increasing number of crypto-related news. On Tuesday it announced the introduction of the new Overtake Award, made in collaboration with Crypto.com.
It will be given to the driver who scores the most overtakes during the season.
Ben Pincus, F1 Commercial Director, said that he and his team are delighted with the new partnership. He believes that the Overtake Award will incentivise drivers to act bravely and be decisive during the race.
Pincus added that the same approach should be used with cryptocurrencies.
A large number of companies have signed contracts with Formula 1 over the past 12 months. However, among them, Crypto.com is leading the way in sponsorship. The platform has already spent millions of dollars on banners and other types of promotional activities for the Sprint F1 series.
Two types of cryptocurrency sponsorships
Most crypto companies partnering with Formula 1 belong to one of the two main categories. They are either exchanges or open-source blockchain companies. For example, Crypto.com and Bitci are cryptocurrency exchanges that allow users to exchange digital assets or acquire them for fiat money.
On the other hand, Ethereum and Tezos are both open-source blockchain platforms, each with its own token and smart contract features.
It seems likely that if Ethereum agrees on a sponsorship deal with the F1 team, it would affect the value of ETH. Additional promotional activities for sports fans rarely fail to catch on and they are keener than other groups to adopt the innovations.
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