Mercedes fears bankruptcy of cryptocurrency sponsor FTX

(Motorsport-Total.com) – Mercedes is “stunned” by the collapse of its Formula 1 sponsor, crypto exchange FTX, last week. The German carmaker suspended its sponsorship deal with FTX on the eve of the Brazilian Grand Prix after the company’s problems emerged.

Toto Wolff is not sure about the situation surrounding the FTX bankruptcy

Enlargement

Faced with a liquidity crisis, FTX eventually filed for bankruptcy, facing an $8 billion financial hole. This has raised concerns about contagion in the crypto markets – with potential implications for other players in the industry.

Recently, there has been a rush of cryptocurrency sponsors into Formula 1. The FTX situation has raised concerns that some of these deals could go astray.

Mercedes team boss Toto Wolff also says the recent FTX incident highlights the risks of the crypto industry, although he believes Formula 1 teams should be active in this area. “It’s difficult because we all know that cryptocurrencies are relevant,” emphasizes the Austrian.

“I strongly believe in blockchain as a kind of transaction in the future. But this situation is very unfortunate. We considered FTX because they were one of the most reliable and financially sound partners.”

“And suddenly, within a week, a crypto company can go down and disappear. This shows how vulnerable the sector still is. It’s unregulated and I believe that has to change. Because many customers, investors and partners are completely amazed by what’s happening happened.” .”


Photo gallery: Doubtful sponsors of Formula 1

Wolff is not alone in saying that the current situation in Formula 1 needs to be examined. Ferrari – sponsored by blockchain network Velas – also says the events cannot be ignored. “Obviously it’s something we have to take care of and watch out for,” said Mattia Binotto.

“There is nothing we can do at the moment. It is very difficult to predict, so we are monitoring it. But as far as our situation is concerned, everything is stable and without problems so far.”

Leave a Comment