According to Nielsen Sports, Formula 1 has the potential to reach around one billion fans worldwide this year, with the 16–35 age group accounting for the largest share. The popularity of Formula One is growing, and bitcoin companies are hopping on board to show their support. To put this in context, the 2022 Formula One season will have ten teams, with crypto businesses presently sponsoring eight of them.
Formula 1 is also becoming associated with blockchain startups. Fantom Foundation, a layer-one blockchain platform, announced its sponsorship of Scuderia Alpha Tauri, an Italian Formula 1 racing team, in January 2022.
This cooperation is vital for various reasons, according to Fantom CEO Michael Kong, with exposure being one of them. “It brings a lot more people to Fantom because F1 is watched by hundreds of millions of people around the world.” “This has contributed to the Fantom network’s user growth,” he explained.
While crypto corporations may have been drawn to F1 sponsorships originally for marketing reasons, the rise of nonfungible tokens (NFTs) is opening up new prospects for Formula 1 teams. According to a recent Deloitte Global report, sports NFTs would produce more than $2 billion in transactions in 2022 alone, more than doubling the amount witnessed in 2021.
According to the report, about five million sports fans around the world will own an NFT sports collectible by the end of this year. As a result, most crypto and blockchain organisations that sponsor Formula 1 racing teams have also launched NFTs to go along with their sponsorships.
Fantom announced a sponsorship deal with Brazilian-American Formula One racers Pietro and Enzo Fittipaldi on March 22, 2022. The two drivers will wear Fantom graphics on their race suits and helmets throughout the F1 2022 season, according to Kong. The Fittipaldi Brothers will also debut their first NFT series on the Fantom network, in addition to the sponsorship deal.
While it’s notable that crypto companies are supporting F1 racing teams and drivers, some may wonder how these collaborations and NFTs will be received by the general public. This is especially crucial to consider considering the fact that non-crypto natives are still learning about NFTs, which can be a confusing notion. According to new research from the NFT Club, despite the fact that NFTs have grown in popularity since December 2020, the most often asked question in 2021 was “where to acquire NFTs.” This suggests that a sizable portion of the population is still unfamiliar with the NFT industry.
When Fantom collaborated with Alpha Tauri F1 driver Pierre Gasly on his NFT debut, Kong said Fantom had a favourable experience partnering with the firm, noting that the company was able to explain NFTs, their benefits, and prospects.