The collapse of FTX, which ended up with $8bn in unrecovered consumer funds, will not have a strong impact on Formula 1, members of the organization have said.
Formula 1 teams have severed ties with the beleaguered cryptocurrency exchange in the wake of its bankruptcy and around the same time German car manufacturer Mercedes also cancelled its relationship with Sam Bankman-Fried’s exchange.
According to McLaren boss Zak Brown, these events should have a nominal effect on Formula 1 as an organization and it’s unlikely the company will suffer significantly as a result.
Formula 1 still has an ongoing partnership with Crypto.com, which is the current sponsor of the FIFA World Cup and which confirmed to be holding 20% of its cash reserves in SHIB, a meme currency.
Meanwhile, neither Brown nor McLaren has lost faith in cryptocurrencies as potential sponsors. He confirmed that his team’s partnership with another exchange, OKX, has been going as intended and that the entire team was very comfortable to move forward with the partnership.
However, Brown confirmed that McLaren has taken stock of OKX’s balance and books.
“We had a choice on which partner to go with, because we had a bunch of approaches, so we believe we've got the best partner in the business. We're well aware of their back end, their reserves, the deposits, how they operate”, he confirmed to Motorsport.com.
While Formula 1 as an organization may now be a little more cautious about signing up partnerships with crypto companies, Brown himself believes that crypto partnerships are no more dubious than partnerships with a number of other industries.
There will always be someone to step in, Brown, said, and this time it is cryptocurrency exchanges that are showing interest.
Looking for your next crypto casino? Check out: Bitcasino, Gamb.co or FortuneJack.