What NFT collaborations are F1 teams doing?

F1 has embraced the digital world ever since the takeover by the Liberty Media Group. It continues to follow in that vein after venturing into the world of non-fungible tokens (NFTs).

For the uninitiated, NFTs are the digital equivalent to sports collectibles and memorabilia that can be traded or put on display, and in some instances, sold for exorbitant amounts.

With multiple NFT catalogs emerging in various sports, F1 too has seen a slew of collectibles emerge on the digital marketplaces of the internet.

McLaren and Red Bull have been working with American company Sweet to mint and sell NFTs. Now, Ferrari intends to join them as well.

The Prancing Horses' CEO, Benedetto Vigna, made a comment on the matter, saying:

“For sure, the digital technologies, the Web 3.0 technologies that are using the blockchain and the NFT is an area that can be interesting for us. It deserves some attention.”

Meanwhile, Alfa Romeo too has been working with Socios to create and sell their F1 NFTs.

The team's commercial director Yan Lefort also shared his thoughts on the shift in dynamics when it came to selling directly to fans, saying:

“I’m convinced that we are witnessing a shift in the way that sponsorship is evolving and how we actually sell, as a rightsholder, our platforms. I think that we need to be right there in terms of being innovative in any kind of way, specifically when it comes to addressing to new audiences and new customers, etc.”

Not all teams have boarded the hype train though. This is primarily down to the environmental concerns that come hand in hand with the minting of NFTs. The operation of the blockchain comes at a significant cost to the planet because of extensive and excessive power usage.

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What do NFTs mean for F1's ultimate goal of sustainability?

As teams continue to mint and fans continue to spend their cryptocurrency on NFTs, more questions regarding the sport's pledge towards a sustainable future emerge.

F1 has already stated it intends to reduce its carbon footprint and plans to achieve carbon neutrality by 2030. In a step towards that goal, the sport has implemented new regulatory changes to power units and the type of fuel that is to be used.

It has also decided to stop most military air shows and has put in place rules that require usage of sustainable fuels for passenger aircraft flypasts before races.

NFTs, while novel and innovative in the eyes of some, go against that grain and could end up being the reason the sport has to answer questions about sustainability.