Backpack, a cryptocurrency exchange and wallet project founded by former FTX employees, is reportedly in talks to raise $50 million at a staggering $1 billion pre-money valuation. According to a report from Axios, if completed, this funding round would elevate the firm to unicorn status, a rare achievement in the current cautious funding climate for digital-asset infrastructure.
The fundraising news coincides with Backpack's detailed unveiling of a novel tokenization framework. This structure represents a significant departure from the rapid liquidity models common in earlier exchange launches. The core design principle is to tie value realization for insiders—founders, executives, employees, and investors—to a future equity event, such as an Initial Public Offering (IPO), rather than near-term token trading. Co-founder Armani Ferrante emphasized that under this model, "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."
The tokenomics plan outlines a fixed supply of 1 billion exchange tokens. A substantial 37.5% of the total supply is reserved for a post-IPO company treasury, effectively locking that portion until an equity exit occurs. Another 37.5% is allocated to circulate in the market during a pre-IPO phase, with releases tied to specific growth milestones like geographic expansion and new product rollouts. The remaining 25% is designated for distribution to users, including 250 million tokens for an airdrop to early supporters via the Backpack Points program and 1 million tokens for Mad Lads NFT holders. Notably, only 25% of the total supply will be liquid at the Token Generation Event (TGE), all directed to users.
Founded in late 2023 by the team behind the Mad Lads NFT collection, Backpack began as a Solana-based wallet. It has since evolved into a full-service crypto exchange offering spot and derivatives trading, and expanded into adjacent areas like lending and prediction markets. A key strategic move was its 2024 acquisition of FTX EU, which provided Backpack with a MiFID II-regulated framework and a foothold in Europe's regulated derivatives market. The firm is headquartered in Dubai, where it also holds a virtual asset service provider license.
This token model attempts to address growing skepticism around exchange tokens, where early insiders have historically gained liquidity well ahead of retail participants. By delaying insider access to token value, Backpack pitches durability and governance discipline to investors. However, the model carries execution risk, as it depends on sustained growth, regulatory compliance, and ultimately achieving a viable path to public markets.
