It was recently revealed that The Red Bull F1 team had signed a $150 million sponsorship deal with a crypto platform based in Singapore. While the details of the deal have not been revealed, it is the largest crypto sponsorship deal ever signed.
Crypto Sponsorship
Many crypto firms appear to have realized that sports have great potential to reach the masses. In recent years, various deals have been signed between crypto firms and sports teams, and personalities. Previously, the focus has been on basketball and soccer teams. However, the focus appears to be slowly moving to F1 teams. Several teams have already signed deals with crypto firms. One of the most notable is Crypto.com, which acted as the Title Sponsor of the first Miami GP event in May 2021. Crypto.com was also a key sponsor of the Aston Martin team.
Details Of The Deal
As part of the sponsorship deal between Red Bull F1 and Bybit, the goal will be to grow fan engagement as a fan token issuance partner. They will also work together to grow crypto-literacy by educating the masses on the crypto world. One interesting aspect of the deal is that Bybit is based in Singapore, where the country’s financial regulator recently banned all crypto advertising in the nation.
This is not the first sponsorship deal of a sports team by Bybit. In November 2021, the company became the official sponsor of Argentina’s soccer team. Bybit has been operating since 2018 as a derivative exchange. In essence, it offers traders access to contracts, which give them the right to buy and sell crypto assets at certain fixed prices at a future date.
What The Leaders Had To Say
Commenting on the deal, Red Bull’s Racing Team Principal Christian Horner stated that, Bybit shared their passion to exist at the fore of innovation, and disrupt the status quo. Horner also pointed to “Bybit’s commitment to enlivening the fan experience in F1 through digital innovation.” He stated that it was also a key mission for the Red Bull team. According to Horner, working with Bybit would help them build a deeper and unique connection with fans globally.
This is not the first crypto-based deal that Red Bull has signed. In 2019, the company announced a deal with FuturoCoin. At the time, it was the first F1 team to sign a crypto-based deal.
Fan Tokens Are Growing In Popularity
Fan tokens are already wildly popular with soccer teams around the world. For instance, most teams in one of the leading soccer leagues globally already have signed fan token deals. The concept appears to be catching on with F1 teams. Recently Alpine announced that it was launching a fan token in partnership with the Binance exchange. Meanwhile, AlphaTauri, Red Bull’s sister team, announced that it had extended its deal with Fantom, which was first revealed in May 2021.
Other teams that have signed a deal with crypto firms in F1 are Mercedes, which signed a deal with FTX in September 2021, and McLaren, which signed a deal with Turkey-based Bitci.com in 2022. Ferrari has also signed a deal with Switzerland’s Velas Network in 2022.
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