Ferrari terminate Velas F1 sponsorship deal

• Sports

Following what has been widely contemplated as a bumpy ride for Ferrari F1 team last year with a clutch of mordant managerial mess-ups which eventually had costed the team boss Mattia Binotto’s job, the F1 team had issued a statement later this week saying that they had terminated their F1 sponsorship deal with the Swiss blockchain tech firm Velas.

In the matter of the fact, Velas became a sponsor of Ferrari F1 team last year, while its branding was prominent on Ferrari cars’ rear wings. Aside from that, they had rubberstamped a multi-year contract as well. However, although, Ferrari F1 team had declined to comment over the reasons behind a premature termination of their contract with Velas, several F1 analysts were quoted saying following the announcement that the decision would highly likely to be prompted by an upscaled cynicism over blockchain technology alongside digital coins.

Global central banks had always remained utterly cautious over blockchain technology alongside associated digital coins, which are frequently used for ferrying illegitimate funds stemming from a slew of illegal activities ranging from human trafficking to sales of illicit materials.

On top of that, latest decision from Ferrari F1 team, came forth just days after Swiss Central Bank had said in a statement that it had been met with a loss for the first time in centuries last year. Swiss Central Bank had neither accepted, nor acknowledged the feasibility of blockchain technology and digital coins, though latest losses would likely to make their regulatory inspections much tougher, suggested industry analysts.

In tandem, ECB (European Central Bank) always remained sceptical over use of digital coins and US Central Bank policymakers had never accepted crypto as a materialistic payment method, while the Reserve Bank of China had banned the use of crypto last year and the Russian President Vladimir Putin had recently signed off a decree which in effect would bar the use cryptos in the country.

Ferrari F1 team terminate Velas’ sponsorship deal

Meanwhile, following a query over a pre-mature termination of their contract with Velas, Ferrari F1 team said, “Unfortunately, the agreement with Velas has been terminated early by us.

We do not comment on matters that are the subject of a dispute and/or litigation”. Apart from Velas, Ferrari F1 team had recently parted ways with their tech partner Snapdragon, too.