Backpack joins the ranks of many startups that have sprung up since the FTX exchange collapsed.
The Backpack exchange, a brainchild of some former employees of FTX and Alameda Research, has successfully secured $17 million in Series A funding. According to a Bloomberg report, this brings the Dubai-based crypto exchange startup’s valuation to $120 million.
Web3-focused venture capital firm Placeholder led the fundraising round. However, it also recorded participation from other investors, including Amber Group, Robot Ventures, Hashed, Selini, and Wintermute.
Backpack Exchange’s Background
Backpack joins the ranks of many startups that have sprung up since the FTX exchange collapsed. Although many of the startups are looking to fill the void left by their former employer, Backpack aims to provide a user-friendly and secure platform for cryptocurrency trading that would cater to both institutional and retail investors.
The platform was co-founded by Armani Ferrante, one of the pioneering employees at the bankrupt crypto trading firm Alameda Research, and Can Sun, the former general counsel to FTX who testified in the trial against Sam Bankman-Fried.
In October 2023, Backpack secured regulatory approval to launch its exchange in Dubai. That was after the Dubai Virtual Assets Regulatory Authority granted it the virtual asset service provider (VASP) license.
It is also worth noting that at least five out of Backpack’s 40-person workforce formerly served as employees under the now-defunct FTX. Therefore, its team of experienced professionals has given the exchange a significant amount of credibility and attention within the crypto community.
As of last week, Backpack is now available to US-based users and has also launched a digital wallet platform. It also has an NFT collection named Mad Lads.
Looking Ahead
For what it’s worth, the Series A funding is a testament to the confidence that investors have in Backpack’s potential to disrupt the crypto exchange landscape. So, it is expected that the exchange will use a major portion of the fund to develop its technology infrastructure further. It will also seek to expand its team and enhance its customer support capabilities.
As the crypto industry continues to evolve, platforms like Backpack, which can secure the backing of prominent VCs, are well-positioned to capitalize on the growing demand for reliable and user-friendly trading solutions.
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