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
Backpack’s structure links token access to corporate progress rather than fixed calendars, limiting early liquidity while placing the IPO at the center of value realization.
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
By delaying insider token access until after a public listing, Backpack is betting that equity-style discipline will reassure users and regulators still wary of exchange-issued tokens.
