McLaren Formula 1 CEO Zak Brown says Formula 1 will not be affected by the turmoil triggered by the FTX crisis.
Following the $8 billion liquidity crisis, FTX’s filing for bankruptcy caused panic in the crypto markets and also affected the F1 teams. Eight of the teams on the grid have sponsorship deals with crypto companies, and F1 has a big deal with exchange Crypto.com.
FTX was the sponsor of the Mercedes team. FTX’s bankruptcy caused the German automaker to suspend the deal ahead of the Brazilian Grand Prix, removing the company’s logos from its cars and assets.
McLaren Boss Trusts Crypto and Formula 1 Industry
FTX’s bankruptcy affected other companies with loans or financial deals. It has raised concerns about market contamination amid uncertainty over the reserves of other major exchanges.
McLaren Formula 1 CEO Zak Brown doesn’t need to worry too much about the impact of the situation on F1, as he says the crypto market will see the strongest participants survive.
Asked whether the potential impact of the crypto sector decline on F1 is a broader risk, Brown replied:
“The FTX thing definitely looks like a mess. I liken it to the internet when it started. You had a lot of internet companies. Many haven’t made it, but companies like Amazon have come out pretty well. I guess it will be the same for crypto and blockchain. You saw so many people running towards him. There will be a handful of real serious players after all, and I don’t know what that number is.”
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