The journey of Backpack, a budding crypto exchange and wallet platform, exemplifies resilience and innovation amidst challenges. Since its inception in 2022, Backpack has navigated through turbulent waters, emerging stronger despite facing significant setbacks.
The company’s trajectory took an unexpected turn when FTX, a major partner and investor, collapsed merely two months after co-leading Backpack’s strategic investment round with a $20 million infusion. Armani Ferrante, co-founder of Backpack and the renowned NFT collection Mad Lads, revealed the adversity faced, stating, “We lost 80% of the operating capital on FTX. We spent all this time building this protocol and it was like an on-the-ground knockout and [we] needed to be resuscitated back to life.“
However, adversity fueled innovation for Backpack. Instead of succumbing to the challenges posed by the collapse of FTX and the ensuing crypto bear market, Backpack rallied its supporters and leveraged a combination of product excellence, community engagement, and impeccable timing to sustain its momentum. As Ferrante puts it, “It’s a combination of product, community, social goodwill, and timing that brought in an incredible group of people.”
The recent conclusion of Backpack’s “Pre Season Phase 1” marked a significant milestone, showcasing impressive metrics including a total trading volume exceeding $27.5 billion and a user base surge to 560,000 KYC’d users. With a peak trading volume hitting $3.66 billion and a 24-hour volume of approximately $2.8 billion, Backpack has undeniably garnered attention as a promising player in the crypto exchange arena.
A key differentiator for Backpack lies in its commitment to addressing the shortcomings highlighted by FTX. Unlike its predecessor, Backpack’s exchange system prioritizes decentralization, ensuring that balances are controlled by independent entities or nodes. This design minimizes the risk of a single point of failure, enhancing the platform’s resilience and security.
Moreover, Backpack’s ambitions extend beyond traditional crypto exchange operations. The company is actively expanding its ecosystem to encompass a crypto wallet and a platform for xNFTs, a novel token standard on the Solana blockchain. Inspired by the dynamic inventory systems in MMO games, Backpack envisions its platform as a versatile tool capable of facilitating a wide array of transactions and interactions within the crypto landscape.
The recent Series A funding round, led by Placeholder VC with a $120 million valuation, underscores investors’ confidence in Backpack’s vision and potential. With plans for global expansion underway, Backpack aims to cement its presence across diverse markets, striving to serve customers across 95% of the world’s GDP by the end of 2024.
Looking ahead, Backpack’s focus remains steadfast on execution and product distribution. As Ferrante aptly summarizes, “It’s one of those crazy things where it’s a winner take all market. We want to seize the moment and given everything we talked about, that opportunity exists this year so we’re making the most out of everything.”
In a landscape characterized by volatility and uncertainty, Backpack’s journey serves as a beacon of resilience, innovation, and unwavering determination, positioning it as a formidable contender in the ever-evolving crypto ecosystem. As the company continues to chart its course, all eyes remain eagerly fixed on Backpack’s ascent and the transformative impact it promises to deliver.