The Monetary Authority of Singapore has limited the advertising opportunities of crypto companies within the framework of the first Singapore Grand Prix since 2019 – the 17th stage of the Formula 1 season of 2022. Now teams can present the logos of their crypto sponsors only on cars and uniforms, and advertising of crypto services is prohibited on the highway and other urban locations.
After the Formula 1 Grand Prix in Miami in May with dizzying integrations of crypto-sponsors, when it seemed that the blue logo Crypto.com placed on all available surfaces, the event in Singapore looks much more restrained.
Such a decision by the Singapore regulator, according to Bloomberg experts, highlights the changing sentiment around cryptocurrencies – both from a regulatory and financial point of view.
The financial authorities of Singapore, Great Britain and France this year strengthened control over cryptocurrencies and crypto companies after the prices of digital assets collapsed, some projects worth billions of dollars disappeared altogether, and many major market players lost huge sums or even went bankrupt.
Partnership with Formula 1 teams has become a status symbol for crypto companies.
Advertising at the races has become a kind of bright multimillion-dollar accessory that signals the prosperity and success of the brand.
In addition to placing logos, team representatives themselves switch to cryptocurrency. Some of them now offer fan tokens.
These are special crypto assets designed for a specific team. They can be exchanged and used to pay for special options for fans.
At the same time, the real situation on the market does not speak of any prosperity and success. The collapse of cryptocurrencies in recent months has cost crypto traders about $2 trillion, according to Bloomberg.
Currently, about 80% of Formula 1 teams are supported by at least one crypto partner. And even the organizer – Formula One Group – has its own contract with Crypto.com for $100 million.
The situation may change as companies themselves may become “a little more thorough and thoughtful” about advertising deals, according to Jeremy Walls, a senior executive at FOG in Miami.
On the other hand, it is already clear that regulators limit crypto companies in their capabilities, reacting to market conditions.