2022 marked a huge shift in the Formula 1 world, with crypto partnerships being the talk of the paddock. This February, we inked a deal with Oracle Red Bull Racing as the Principal Team Partner. Together, we’ve launched many exciting initiatives — from The Search for The Next Level film, starring Max Verstappen and Sergio Pérez, to the Playseat NFT Auction at the Monaco Grand Prix — this synergistic partnership is one for the books.
On Sep 28, 2022, Ben Zhou, co-founder and CEO of Bybit; Oliver Hughes, Chief Marketing Officer at Oracle Red Bull Racing; and Brittany Li, Independent Advisor and Panel Moderator; sat down at the All That Matters panel to share leading insights on the Oracle Red Bull Racing x Bybit partnership.
Here’s a quick recap on their fireside chat:
Brittany: Ben and Oliver, you’ve known each other for a while now through this partnership. Why don't you tell us about how everything happened and how you guys decided on this partnership?
Ben: To best explain this, I think we should go back to the beginning. When we started in 2017, I remember explaining to our new users that Bitcoin is not a scam, our company is here for the long run.
Since the last bull run, crypto has adopted a different kind of feel to it, perhaps due to COVID-19 as well. I think people are looking for better alternatives for stores of value. Currencies are failing in countries like Argentina and Brazil, and crypto has emerged as the mainstream. The world is heading aggressively in this direction, with exchanges being a centerpiece in the whole ecosystem.
When we were looking for a partner, we looked across all possible opportunities and felt Oracle Red Bull Racing was the one. It was tricky, because the nature of Formula 1 is very vocal, but its international reach put us on the world map. Also, Oracle Red Bull Racing is famous for extreme sports and innovation — and that's really what we’re all about as well. So far, this has been the best partnership that took us out of our comfort zones.
Brittany: Oliver, do you share the same sentiment?
Oliver: One hundred percent. Both crypto and formula racing is extremely fast-paced and we’ve been on the winning track. For us, we’ve had many suitors in the space that wanted to partner with us. What we found with Bybit was the same kind of like-minded spirit — they're very much focused on education and innovation, and we want to make sure that we're going into this space with a partner that has the same sense of gratitude and responsibility.
Brittany: What would you say are the top objectives for this partnership?
Oliver: One of the things we're very focused on is fan engagement. When we worked with Oracle last year, we realized that for a partnership to thrive, it requires a tech edge. We’re building this infrastructure to engage our fans on a deep and meaningful level.
In general, our fan base is very interested in tech. They love innovation and finding out about the engineering of our cars. Also, they’re young and hungry to learn about crypto too. Therefore, we wanted to find a good partner that can educate our audiences about crypto, Web3 and the metaverse.
Brittany: Absolutely! Ben, how is Bybit going to help achieve these tech goals for fan engagement?
Ben: When we talk about fan engagement, it’s a form of fan empowerment — which leads me to the topic of Web3. Web2 is what we call user created, platform owned and platform controlled, whereas Web3 is user-created, user-owned and user-distributed.
In this sense, the best way to really empower your fan base is to give them full ownership of things. That’s what the NFT investment token does. The most successful examples currently are the football clubs with their own fan tokens. So how do these fan tokens work? They allow fans to vote on club decisions, allowing fans to be more involved, and feel one with the team.
This is something we discussed in our initial contracting stage and we’re working hard to launch something similar — stay tuned as it will be launching real soon!
Brittany: You mentioned that fans are eager to learn more about the crypto world. The videos you produced are really the basis of this. Oliver, is this something you’d like your fans to relate to when they try to understand what crypto is all about?
Oliver: Yes, definitely. There are a lot of terms used in the crypto world that are quite alien to many, so it’s important that we make them relatable, human, and humorous. Formula 1 is a massive global platform with a huge amount of eyeballs — so it’s a great platform to help people better understand the crypto world.
Brittany: From Bybit’s perspective, education plays a big part in mass adoption, right?
Ben: Yes. For starters, we launched BitDAO — the world’s largest DAO — with a treasury valued at $1 billion. We also started EduDAO which partners with more than 30 reputable universities all over the globe, including the likes of Berkeley, Oxford, Stanford. We work with their blockchain and host weekly global hackathons to really incubate developer communities.
Next, Bybit is a kind of one-stop-shop for users — we have products ranging from fiat-based services to Earn products that function just like your traditional banking products. Our intention is to make our users’ crypto experience as simple as possible, with our Web and App interfaces designed to be user-friendly. We’re all about being the crypto ark of the world — helping our users navigate the crypto seas.
Brittany: That’s great to hear! Oli, you mentioned that your fan base mostly comprises the younger generation, and the team has been working on initiative to engage with them. Can you tell us more about that?
Oliver: The average age of Formula 1 fans is probably mid 30s, but our fan base is generally seven years younger than every other team. The reason is because we engage with our audience and actually educate them about the sport. When we first premiered in the paddock close to two decades ago, Formula 1 had always been a very exclusive and selective environment. Everyone looked at us and we asked ourselves, “why are we here?” 18 years later, we’ve established ourselves as a game changing team that leads the charge.
On the tech side of things, we’re also giving fans a gamified experience — as fans watch videos or engage with content, they earn points to level up and thus gain access to more exclusive content. So the more involved you are with the space, the higher your chances of moving up the engagement ladder — and the more access you’ll gain to things like NFTs, fan tokens, and so on.
Brittany: The crypto market can be very volatile at times and the racing scene can be risky at some points as well. Could you comment about security and risk management, given the speed and velocity of both the crypto exchange and racing?
Ben: The bear market washed out quite a few actors in the crypto space — and I think it’s due to the fact that they didn’t do proper risk management. As an exchange, we’ve been through quite a few cycles of the market.
Exchanges are unique in a way that we’re actually the number one target for hackers. At any exchange, you’re constantly dealing with hackers on a daily basis. That’s why we have a very strong infrastructure and make sure that our client funds are in custody.
Brittany: Also, I would assume that the message you’re sending to fans is not to target the trading side of things, but it comes from more of a fan engagement standpoint, right?
Oliver: Absolutely. We want to make sure that all the partners we work with are responsible. Here’s the thing: sport has always been built on technological innovation, but safety is also what we always prioritize. Our racing cars is built to race at 170 miles per hour as safely as possible. At the heart of it all, Formula 1 is very much about safety.
Brittany: How do you keep fans engaged, apart from fan tokens?
Ben: At the core of crypto is community. A lot of fan engagement, promotions and customer support happen within our communities. We have global ambassadors from over 30 countries where they manage communities, listening to their feedback so that we can build better products.
Ultimately, this is the key to a brand’s longevity, and I’m sure these too are values that Oracle Red Bull Racing holds in high regard.
It's a wrap and for Asia Crypto Week and we’re off to the races! Stay tuned for more updates with the #NextLevelMeetUp and check out Bybit Race Insider for more exclusive the Oracle Red Bull Racing x Bybit content drops!
