Backpack Exchange, a cryptocurrency exchange founded by former FTX employees, has announced plans to launch a new token with a total supply of 1 billion. The company stated its token distribution schedule is explicitly tied to its goal of conducting a U.S. initial public offering. According to a separate report, the firm is discussing a $50 million funding round that could value it at $1 billion.
Backpack Exchange will launch its token with 25% of the total supply, or 250 million tokens, available on an undisclosed future date. Another 375 million pre-IPO tokens will be unlocked upon achieving key milestones like regional expansions or new product launches.
The final 375 million post-IPO tokens will remain locked until one year after the company goes public. These tokens will be held in a corporate treasury, as detailed by co-founder and CEO Armani Ferrante.
Ferrante explained the guiding principle is that “insiders ‘dumping on retail’ should be impossible.” He added that no team members or investors received direct token allocations, instead holding equity in the company.
“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 wrote. He noted the IPO goal might happen quickly or not at all.
This announcement coincides with a report indicating Backpack is in talks to raise $50 million at a $1 billion pre-money valuation. The exchange was founded in 2022 by Ferrante, former FTX.US strategy lead Tristan Yver, and former FTX general counsel Can Sun.
