How Crypto Continues to Revolutionise the Racing Industry

If you are, then you are just in the right place. Ever since crypto came to the scene in the 2010s, many industries have opened up to this intriguing technology. But what do things look like in the motorcycling industry?

Looking at it from a broader perspective, the crypto market share stands at $4.06 billion and is expected to grow further and reach $11.72 billion by 2031, according to SkyQuest Technology. From fast transactions to cheaper processing costs, the benefits that come with this technology are just numerous. Reading this article, you will discover how companies like Formula 1 and MotoGP are benefiting.

A Broader Trend

While crypto promises numerous benefits for the cycling industry, it is not the only sector benefiting from this technology. Especially in ecommerce, crypto has brought many possibilities. In an industry like the casino sector, game providers are now capturing the attention of tech-savvy enthusiasts by allowing players to transact with crypto. For instance, you can now play online pokies at Ignition with any digital currency – whether Bitcoin, Litcoin, Ethereum or whichever.

In other sectors like supply chain management, companies use blockchain, the technology behind crypto, to automate various supply chain processes like procurement and compliance. As if that is not enough, governments are also using this technology to store citizen information and create systems where citizens can easily access needs like social security and medical services. The EU, for instance, has noticed how influential blockchain is and has been incorporating it into various aspects of European citizen's lives.

These examples are just a testament to the benefits that crypto is set to bring to the motorcycling world. In just June 2024, Gresini Racing, a MotoGP team, confirmed the launch of a fan-driven crypto sponsorship program that would reduce sponsorship costs. The plan was to provide fans with team packages for as low as 125 euros, making it more suitable for a wider audience.

This program, which involved the partnership of MotoGP Guru, Gresini Racing and SPORTPASS, sought to move the exclusive power of sponsorship from corporates to the fan base. According to Graeme Warring, founder of WePlay Media, such partnerships were necessary to transform professional sports as they allow fans to participate actively in the sports they love.

Plus, there are more benefits for fans to expect. These include showing their names on bikes and participating in Zoom calls with team members. On top of that, the agreement would see fans receiving custom merchandise and enjoying VIP Paddock Experiences during the 2024 Grand Prix events.

A Case Study of Formula 1

Bitcoin is one of the cryptos that is gaining traction in F1 by storm. In just 2022, Red Bull Racing landed on a $150 million crypto-based deal with a Singaporean company, Bybit, which would last three years. By welcoming Bitcoin, teams can draw the attention of partners from the tech industry, adding to their revenue sources.

We cannot mention the power of crypto in the racing industry and not talk about Ethereum. This currency boasts a robust blockchain technology that supports smart contracts. After demonstrating heavy interest in Web3 technology in the past few years, McLaren launched the McLaren Racing Collective, an international community that allows fans to experience the brand through NFTs.

The team's collectibles site ensures you can use NFTs to access exclusives like tickets to upcoming races and so much more. McLaren, through Matt Dennington, its Executive Director, has expressed its commitment to strengthen its relationship with OKX as this will help the team attain its goals of maximum use of Web 3 technology.

Enhancing Fan Engagement

Binance landed in Formula 1 in 2022 for the first time after the company, alongside BWT Alpine, agreed to the deal. The ALPINE token was to be available on Launchpad and then make its way to the spot exchange for P2P purchase later. This launch came after Binance entered professional sports – soccer – in 2019.

If you are tech-savvy and a racing enthusiast at the same time, the ease-of-use nature of Binance will intrigue you. Once you have your ALPINE token, you can enjoy exclusive experiences like accessing the racing environment directly, purchasing merchandise, etc. On top of that, teams can offer limited-edition items that fans can only purchase with BNB, enhancing fan engagement.

Other currencies that are transforming the racing industry include the Chiliz, which has brought so much change when it comes to fan interaction through tokenisation. With such tokens, you can participate in team decisions like race-day activities.

It is clear enough that crypto has brought tremendous changes to the racing world. Who would have ever thought that fan engagement and interaction would become this engaging? And since innovation has yet to reach its peak, we can only imagine what the future of crypto holds for the racing industry.