Days before the Australian Grand Prix in Melbourne, crypto exchange Kraken signed its first major global sponsorship deal with Williams Racing.
Since the collapse of the crypto exchange FTX, which had far-reaching effects on the crypto industry, crypto sponsorship deals with F1 teams have been dwindling. However, the tide appears to be turning as Kraken signs a sponsorship deal with Williams Racing.
Upon the agreement, Kraken will become an official crypto and Web3 partner of UK-based Williams Racing. It is worth noting that it is the first crypto sponsorship deal for the Formula 1 team.
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The sponsorship deal is set to be active for the rest of the F1 season, which began in March and will last until November. Kraken's logo will appear on the rear wing of Williams' cars, drivers' caps, and suits.
On top of that, according to the official announcement:
In line with Kraken’s commitment to driving global awareness and adoption of crypto, the rear wing will showcase KrakenNFT customer-owned digital collectibles artwork from leading third-party NFT projects at select Grands Prix. Williams and Kraken will also collaborate on the design of limited-edition caps for select Grands Prix.
It is believed that F1 fans will be able to see NFTs from major digital collections, like the World of Women and Bored Ape Yacht Club.
While crypto sponsorships in Formula 1 are not new, they have not always been successful. Many deals fell apart after the collapse of FTX, which also had a sponsorship deal with Mercedes-AMG Petronas.
In recent months, Ferrari terminated its sponsorship deal with blockchain firm Velas. Around the same time, Red Bull Racing's deal with Tezos was terminated prematurely.
However, several crypto-related brands have active deals with F1 teams. These include Binance, which has a contract with Alpine. Others are OKX and Tezos, which both have deals with McLaren. Additionally, OpenSea has a sponsorship agreement with Haas.
The deal comes amidst increased regulatory pressure in the United States. In February, crypto exchange Kraken was forced to stop offering staking services in the US. On top of that, SEC issued Kraken with $30 million for alleged securities laws violations.
