Former FTX, Alameda Research Employees Secure $17M for Backpack Crypto Exchange

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A group of former FTX and Alameda Research employees have raised $17 million to develop Backpack, a new crypto exchange. With a Series A round valuing the startup at $120 million, Backpack aims to fill the void left by the collapse of previous industry giants. Led by experienced figures from FTX and Alameda Research, the project signals a new chapter in the crypto exchange landscape.

A $120 Million Valuation

A group of former FTX and Alameda Research employees have successfully raised $17 million in funding to develop a new crypto exchange named Backpack. The Series A round has propelled Backpack to a valuation of $120 million, with prominent investors such as Wintermute, Placeholder VC, and Selini Capital participating in the funding, reports Bloomberg.

The co-founders of Backpack bring a wealth of experience from their previous roles within the crypto industry. Can Sun, formerly FTX’s general counsel, joins Armani Ferrante, an early employee of Alameda Research, at the helm of the Dubai-based company. Notably, five out of Backpack’s 40-person team previously worked at FTX, underlining the project’s roots in established crypto firms.

A Plan for Innovative Services

Backpack’s ambitions extend beyond merely providing a trading platform, as it also offers a crypto wallet and an NFT collection known as Mad Lads. This comprehensive approach aims to capitalize on the growing interest in digital assets and non-fungible tokens (NFTs) among investors and enthusiasts alike.

The emergence of Backpack comes amidst a shifting landscape in the crypto industry, following the challenges faced by platforms like FTX. With their newfound funding and experienced team, Backpack seeks to carve out its niche in the market and provide users with innovative solutions for trading, storing, and interacting with cryptocurrencies.

A Newfound Confidence

The successful fundraising round underscores investor confidence in Backpack’s vision and highlights the ongoing evolution of the crypto exchange sector. As the platform prepares to launch and expand its offerings, all eyes will be on how it navigates the competitive landscape and delivers value to its users. It is left to be seen how the proposed exchange would leverage on its resources going forward. This is especially so considering the antecedence of FTX, which went bankrupt after a few years of operation.

Author: Candace

Candace loves the arts. She holds some bitcoins.