How Backpack Plans to Roll Out Its Token Supply
Backpack, a crypto exchange founded by former employees of FTX, said it plans to launch a token with a total supply of 1 billion units, linking the release schedule directly to its longer-term ambition of going public in the United States.
In a post on X on Monday, the company said the token launch would begin with 25% of the total supply, or 250 million tokens, which will be released on a future date that has not yet been disclosed. A further 37.5%, or 375 million tokens, would be unlocked before any initial public offering, subject to what the company described as “key milestones.”
Backpack co-founder and chief executive Armani Ferrante said those milestones could include expansion into new regions or the rollout of additional products. The remaining 375 million tokens would be classified as post-IPO supply and locked until at least one year after the company completes a public listing, with those tokens held in a corporate treasury.
Investor Takeaway
Why the Token Is Explicitly Linked to an IPO
The token framework reflects Backpack’s effort to align incentives between users, the company, and potential public-market investors. In a separate post on X, Ferrante said the “guiding principle” behind the design was that insiders “dumping on retail should be impossible.”
Ferrante added that neither the founding team nor investors should benefit financially from the token before the business reaches what he described as “escape velocity,” a point he tied directly to a public listing.
“Going public might happen quickly, it might happen not so quickly, and in fact, it might not happen at all,” Ferrante wrote. “In any case, we’re going for it.”
He also said that no founders, executives, employees, or venture investors have received direct token allocations. Instead, the team holds equity in the company, with token-linked wealth contingent on a future equity liquidity event, such as an IPO.
“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 said.
IPO Ambitions Come as Funding Talks Surface
Backpack’s public listing ambitions come amid reports that the exchange is in talks with investors. Axios reported on Monday that the company is discussing a $50 million fundraising round at a $1 billion pre-money valuation, a deal that would place Backpack among the crypto sector’s latest unicorns if completed.
The reported discussions underline how the exchange is attempting to balance two traditionally separate paths in crypto: token issuance and equity financing. Rather than treating the token as a substitute for public markets, Backpack appears to be framing it as complementary to an eventual listing.
That approach stands in contrast to earlier crypto models in which tokens often served as the primary liquidity event for founders and early backers. In Backpack’s case, token value is being deferred until the company can access equity markets, a structure that may appeal to investors still cautious after past exchange failures.
Investor Takeaway
Background and Market Context
Backpack launched in 2022 and was co-founded by Ferrante alongside Tristan Yver, the firm’s US strategy lead, and Can Sun, a former general counsel at FTX. Ferrante previously worked at Alameda Research, the trading firm linked to FTX, giving the company roots in a part of the industry now closely scrutinized by regulators and investors alike.
That history adds weight to Backpack’s emphasis on delayed insider rewards and clear separation between equity ownership and token distribution. Since the collapse of FTX, exchange-issued tokens have faced renewed skepticism, with regulators questioning whether they create conflicts of interest or blur the line between customer activity and corporate finance.
Against that backdrop, Backpack’s token design appears intended to reduce near-term selling pressure while tying long-term value to operational growth and public-market access. Whether that structure will satisfy regulators or attract sustained user interest remains an open question, particularly if an IPO takes longer than expected or does not materialize.
What to Watch Next
The immediate unknowns are timing and execution. Backpack has not disclosed when the initial 250 million tokens will be released, nor which milestones will trigger the pre-IPO unlocks. The progress of its reported fundraising talks will also shape how investors assess the feasibility of a public listing.
More broadly, the exchange’s strategy offers a case study in how crypto firms are rethinking token economics after a turbulent period for the industry. By tying token value to an IPO rather than early trading, Backpack is testing whether public-market discipline can coexist with crypto-native incentives.
The outcome may influence how other exchanges and platforms design future token launches, particularly those seeking to operate in the US while keeping an IPO on the table.
