Former FTX Team’s Backpack Exchange Reveals Token Model Tied to IPO
Backpack has unveiled the tokenomics framework for its upcoming 1 billion supply utility token, tying distribution directly to business milestones and a future U.S. IPO.
- Token unlocks are tied to growth milestones and a future U.S. IPO.
- No insiders receive tokens – founders and investors hold equity only.
- Most of the supply stays locked in the company treasury.
- The plan supports expansion into the U.S., Japan, and the EU.
CEO Armani Ferrante describes the strategy as “reaching escape velocity,” where token unlocks follow real execution rather than hype-driven schedules.
The model is designed to align long-term platform growth with a potential public listing, positioning the token as a utility layer connected to company progress rather than short-term speculation.
Three-phase token distribution structure
The total token supply is divided into three clearly defined stages. The initial token generation event releases 25% of supply, with most of it allocated to Backpack Points holders and a smaller share reserved for Mad Lads NFT holders.
25% on TGE
Here's the entire token distribution
Utility coming next 🎒 pic.twitter.com/O7gyL7WP4v
— Backpack 🎒 (@Backpack) February 9, 2026
A further 37.5% is allocated to the pre-IPO phase and unlocks gradually as the exchange hits specific growth triggers such as entering new regions or launching major products. The final 37.5% is held in the corporate treasury and remains fully locked for one year after the company completes its IPO.
This structure is meant to ensure that token circulation closely mirrors the company’s operational expansion.
No insider allocations, equity-only upside
A key pillar of the framework is the absence of direct token allocations to insiders. Founders, executives, and venture investors hold equity in the company instead of tokens, meaning any financial upside depends on an equity exit like the planned IPO.
By separating insider compensation from token ownership, Backpack says it aims to eliminate the risk of insiders selling tokens into retail markets. The majority of the supply remains under company control as a long-term strategic reserve.
Funding talks and “unicorn” ambitions
The tokenomics announcement comes alongside a fresh funding push. Backpack is reportedly in discussions to raise around $50 million at a $1 billion pre-money valuation, which would grant the exchange unicorn status.
Management sees this capital as critical to accelerating expansion and product development ahead of a potential public listing in the U.S.
Expansion into major regulated markets
Backpack currently serves roughly 48% of the global market and is targeting entry into the United States, Japan, and the European Union. The company says regional expansion will act as one of the main triggers for future token unlocks during the pre-IPO phase.
Alongside geographic growth, the exchange plans to roll out new offerings including traditional financial services, securities-style products, prediction markets, and a card product aimed at everyday use.
Compliance-first strategy and Europe push
Regulation sits at the center of Backpack’s growth plan. The company recently acquired FTX EU, allowing it to help distribute bankruptcy claims to former users while laying the groundwork for regulated derivatives offerings in Europe.
Backpack expects those derivatives products to launch by the first quarter of 2025, reinforcing its positioning as a compliance-focused exchange built with public markets in mind.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
