The Formula 1 team, Red Bull Racing have announced a new sponsorship agreement with a Singapore cryptocurrency exchange company, Bybit. As per reports, the new contract is worth $150 million over three years. According to Red Bull, it is the largest annual cryptocurrency sports agreement.
In this association, Bybit will be in charge of the team’s fan tokens. This is not a non-fungible token (NFTs). They are more akin to cryptocurrencies, with the price fluctuation deciding the team’s fortunes. Typically, fan tokens allow owners to vote on non-critical decisions such as colour schemes. Socios is best known for its fan tokens, and it has a partnership with Aston Martin Cognizant.
According to Red Bull Racing CEO Christian Horner, “Enlivening the fan experience through innovation is a key mission for the Team, and Bybit’s assistance will help us build a deeper, more immersive, and unique connection with the team for fans around the world.”
Bybit also joins the team as a tech incubator partner, with responsibilities that include crypto-literacy initiatives, support for women in blockchain, and promotion of green technologies. The cryptocurrency exchange is one of the top ten in the world, with six million registered users.
According to one version of the announcement, the payment would be made in cash and in BIT, BitDAO’s governance token. The decentralised autonomous organisation (DAO) aims to aid blockchain developers and the development of a decentralised token economy. Bybit pledges a small percentage of all transactions on its platform to BitDAO, which claims to be backed by Peter Thiel and his Founders Fund, as well as several other venture capital firms.
Meanwhile, other Formula 1 teams have also embraced cryptocurrency. McLaren collaborated with Tezos to create non-fungible tokens and Bitci to create fan tokens. Scuderia Ferrari F1 is sponsored by Velas Blockchain.