What Is Backpack Raising and Why Now?
Backpack, a crypto exchange and wallet project founded by former FTX employees, is in talks to raise $50 million at a $1 billion pre-money valuation, according to a report from Axios. If completed, the round would place the firm among a small group of crypto trading platforms to reach unicorn status amid a cautious funding climate for digital-asset infrastructure.
The reported fundraising comes as Backpack outlined a detailed tokenization framework that departs from the fast-liquidity playbooks common during earlier exchange launches. The company said the structure is designed to tie value realization for insiders to a future equity event rather than near-term token trading.
Backpack has not publicly confirmed the financing terms. The Block said it reached out to the company for comment but did not receive a response by publication.
Investor Takeaway
How Backpack’s Token Structure Is Designed
Backpack unveiled a preview of its tokenization plan on Monday, laying out how a fixed supply of 1 billion exchange tokens would be allocated across pre- and post-IPO phases. According to the plan, 37.5% of the total supply would be reserved for a post-IPO company treasury, effectively locking that portion until an equity exit event occurs.
Co-founder Armani Ferrante said the structure is meant to avoid retail dilution and align incentives over a longer horizon. “It’s not until the company goes public (or has some other type of equity exit event) that the team can earn any wealth from the project,” Ferrante said on Monday.
He added that value accrual for insiders is linked to reaching public markets. “It’s not until the company has access to the largest, most liquid capital markets in the world by going public — and it’s not until the company has done all the hard work to earn access to those markets — that the team can reap the rewards of the value created by the Backpack community from now until then.”
Another 37.5% of the token supply would circulate in the market during a pre-IPO phase, with releases tied to specific milestones such as geographic expansion and new product rollouts. The remaining allocation includes 250 million tokens slated for an airdrop to early supporters, including users of the Backpack Points program, and 1 million tokens earmarked for Mad Lads NFT holders.
The company has not set a date for a token generation event.
From Wallet Project to Regulated Exchange
Backpack began as a Solana-based wallet project before expanding into a full crypto exchange offering spot and derivatives trading. The firm has also moved into adjacent areas including lending and prediction markets, broadening its revenue mix beyond trading fees.
The company was founded in late 2023 by the team behind the Mad Lads NFT collection. Ferrante previously worked as a Solana developer and was an early employee at Alameda Research, while co-founder Can Sun served as general counsel at FTX and later testified during the criminal trial of Sam Bankman-Fried.
In 2024, Backpack raised $17 million in Series A funding, with Placeholder VC as lead investor alongside Robot Ventures, Wintermute, and Selini. That capital supported the transition from consumer wallet to exchange infrastructure.
A turning point came last year when Backpack acquired FTX EU, the former European subsidiary of the collapsed exchange. The deal provided access to a MiFID II-regulated framework, giving Backpack a foothold in Europe’s regulated derivatives market. The firm is headquartered in Dubai, where it also holds a virtual asset service provider license.
Investor Takeaway
Why the Structure Stands Out in Today’s Market
Exchange token models have faced growing skepticism after repeated cycles where early insiders gained liquidity well ahead of retail participants. Backpack’s framework attempts to reverse that dynamic by delaying insider access to value until an IPO or comparable equity event.
That approach also reflects a broader recalibration in crypto fundraising. With public market listings once again being discussed by several large platforms, tying token economics to equity outcomes offers a clearer bridge between traditional capital markets and crypto-native incentives.
Still, execution risk remains. The model depends on sustained growth, regulatory compliance across jurisdictions, and a viable path to public markets. Without an IPO or equivalent exit, the post-IPO token tranche remains locked, potentially limiting flexibility for both the company and token holders.
What Comes Next for Backpack
The immediate focus will be whether the reported $50 million raise materializes and on what terms. Beyond funding, investors will be watching how Backpack rolls out its token distribution, expands into new regions, and integrates products such as lending and prediction markets into its exchange stack.
