Backpack, a new crypto exchange, has successfully closed its Series A funding round, securing $17 million. This financial milestone has propelled the company’s valuation to an impressive $120 million. The funding round saw participation from notable investment firms, including Wintermute and Amber Group, marking a bold step forward in the crypto space. Backpack’s establishment comes nearly a year following the collapse of FTX, signaling a resurgence in the industry led by veterans from FTX and Alameda Research.
Founding Team’s Expertise and Vision
Co-founded by Armani Ferrante, a former early Alameda employee who now takes the position as CEO, and Can Sun, FTX’s former general counsel, Backpack brings together a wealth of experience from the industry’s forefront. Can Sun, known for his role as a government witness in the Sam Bankman-Fried fraud case, brings a unique perspective to the team, having claimed unawareness of the misuse of funds at FTX. The duo is joined by a big team of 40, including five former FTX employees, ready to navigate the complexities of the crypto exchange market.
Since its launch in October last year, Backpack has shown remarkable growth, attracting over 420,000 users worldwide. The Dubai-based exchange reported a staggering $6.5 billion in one-way trading volume this month alone, with a notable increase in demand from Asian markets. This growth is indicative of Backpack’s strategic positioning to capture a significant market share, especially in regions previously dominated by FTX.
Overcoming Challenges and Setting New Standards
The journey to establishing Backpack was not without its challenges. The shadow of FTX’s collapse cast initial doubts among potential investors. However, the conviction of Sam Bankman-Fried in a New York courthouse last year shifted perspectives, opening doors for investment in Backpack. Co-founder Armani Ferrante acknowledges the heightened expectations and scrutiny faced by new crypto exchanges post-FTX saga, emphasizing the commitment to transparency and integrity in building Backpack.
Backpack’s entry into the market is timely, as the space vacated by FTX presents new opportunities, especially for professional traders. The exchange is not alone in its ambition, with entities like EDX Markets, backed by Fidelity and expanding into Singapore, vying for a share of the professional trading market. Despite the competitive landscape, Backpack’s unique blend of experience, strategic market positioning, and commitment to user trust positions it as a formidable player in the quest to redefine the crypto exchange industry.