Backpack Exchange hits $1B valuation, joins crypto unicorn club

Backpack, a regulated cryptocurrency exchange and Web3 wallet ecosystem, has emerged as the latest trading platform to achieve unicorn status.

Currently, the company is in discussions to secure $50 million in new capital with a $1 billion pre-money valuation. Axios, a prominent digital media company, initially reported this announcement on Monday, February 9.

This significant milestone came after the crypto exchange operator launched its tokenization initiative, which allocates 37.5% of its 1 billion total exchange token supply to a company treasury immediately after an initial public offering (IPO).

Armani Ferrante, the co-founder and CEO of Backpack, commented on the strategy. He noted that this approach is designed to avoid offloading tokens onto retail investors and foster future strategic objectives.

“It’s only when the company goes public or has another type of equity exit event that the team can gain any wealth from the project,” Ferrante said, further adding that, “The team can only enjoy the benefits created by the Backpack community after they’ve done all the hard work to access the largest, most liquid capital markets in the world through going public.”

Backpack seeks to solidify its position as a leader in the blockchain ecosystem 

Backpack elaborated that 37.5% of the total supply will be made readily accessible in the market before the initial public offering, leveraging specific growth targets, such as market expansion and new product launches.

Despite the crypto exchange failing to disclose the exact date of its token generation event, it hinted at an airdrop of about 250 million tokens to early backers and community participants, including participants in the Backpack points initiative, with a reserve of 1 million tokens allocated for Mad Lads NFT holders. 

In the meantime, it is worth noting that Backpack operates as a regulated, compliance-first centralized crypto exchange (CEX) that integrates self-custodial wallet technology, positioning itself as a hybrid “on-chain CEX”. 

Following this finding, reporters noted that Backpack raised $17 million in Series A financing in 2024, with Placeholder VC leading the round alongside renowned investment partners such as Robot Ventures, Wintermute, and Selini.

Moreover, in 2025, the crypto exchange bought FTX EU for around $32.7 million. With this acquisition in place, Backpack could now access a MiFID II-regulated framework. As of now, Backpack is based in Dubai, United Arab Emirates, and has obtained a virtual asset service provider (VASP) license for its operations in the city.

Meanwhile, when reporters reached out to the crypto company for clarity, the exchange declined to respond. Sources familiar with the matter, who wished to remain anonymous because the talks were private, said that Backpack intends to go public in the United States while strengthening its financial infrastructure across banking, payments, and securities.

Backpack embraces a new tokenomics strategy in its operation

Backpack is implementing a new tokenomics strategy to safeguard retail token holders’ interests. The cryptocurrency exchange announced this initiative on Monday, February 9, stating that it will release tokens gradually as it achieves specific goals.

Under this new strategy, reports highlighted that Backpack’s 25% of the total token supply is scheduled to be unlocked and distributed during its token generation event. 

In an X post, Ferrante claimed that, “Every time we enter a new region or introduce a new product, it creates a chance for growth.” He emphasized that the strategic move into key markets, such as the EU, Japan, and the United States, along with offerings like prediction markets, stocks, and its card, fuels this growth. “Like gasoline on a fire, the token helps keep igniting new markets,” he added.

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