With Ferrari terminating its Velas sponsorship, are F1 teams done with crypto? The once-booming partnership between Formula 1 and the cryptocurrency world appears to be cooling down. Recent headlines point to a significant shift, raising questions about the future of crypto sponsorships in motorsport.

Ferrari are set to have $30 million less to play with in 2025, after Velas – a blockchain company that was set to release Ferrari-themed NFTs – parted ways with them. It\'s a substantial blow to the Scuderia\'s budget and a stark reminder of the volatility within the crypto market. This termination comes amidst broader concerns about the sustainability and long-term viability of crypto-based marketing strategies within F1.

Several other F1 teams have also faced challenges with crypto sponsorships. Some partnerships have dissolved due to regulatory hurdles, while others have suffered from the fluctuating fortunes of individual cryptocurrencies and related businesses. The initial allure of tapping into a younger, tech-savvy audience through crypto has given way to a more cautious and skeptical approach.

While not all F1 teams are completely abandoning crypto, the Ferrari-Velas split serves as a cautionary tale. The gold rush of crypto sponsorships seems to be over, replaced by a more discerning evaluation of the risks and rewards. Will other teams follow suit? Only time will tell if this marks the beginning of the end for crypto\'s presence in Formula 1, or simply a recalibration of the relationship.

The future of F1 sponsorships may lie in more stable and traditional industries. Teams are actively seeking partners with proven track records and long-term financial security. While the potential for innovation and growth with crypto remains, the risks associated with this volatile market have become increasingly apparent. The termination of the Ferrari-Velas deal is a significant indicator of this changing landscape.