Backpack Exchange has announced an innovative approach to incentivize its users by allowing them to exchange staked tokens for equity in the company. The exchange”s CEO, Armani Ferrante, revealed that those who stake the platform”s upcoming token for a minimum of one year could convert their tokens into a share of the company, which plans to reserve 20% of its equity for this initiative.
This announcement was made on social media, where Ferrante emphasized the importance of creating a model that sidesteps the pitfalls of previous token launches, which often failed to deliver on their promises. He expressed a commitment to building a sustainable and trustworthy ecosystem rather than pursuing quick profits.
As Backpack Exchange prepares for a potential initial public offering (IPO), the company has not yet finalized the date for its Token Generation Event (TGE). However, it plans to release 25% of its total supply of one million tokens at launch. This initial batch will primarily benefit users who participated in a points campaign or hold Mad Lads NFTs.
The token distribution is structured to favor users, with 62.5% of the total supply allocated to them before any allocations are made to team members or investors following the IPO. The remaining 37.5% of tokens are earmarked for the company”s treasury and linked to the future IPO.
Ferrante criticized the traditional token launch model, which often sees insiders receiving significant early allocations, leading to predictable market pressures on retail investors. He aims to create a more equitable framework, stating, “I”m just tired of false promises.” This initiative is part of a broader trend in the cryptocurrency sector, where regulatory shifts in the United States may create a more favorable environment for companies looking to go public.
Currently, Backpack Exchange is in discussions to raise $50 million at a pre-money valuation of $1 billion, positioning it as a potential unicorn startup. The exchange operates under regulatory frameworks in both the Middle East and Europe and is actively expanding its presence in the United States.
In a strategic move, Backpack recently partnered with Superstate, a registered transfer agent with the SEC, to facilitate the introduction of tokenized stocks on its platform. As part of its preparations for the upcoming token launch, the company has also requested users to verify their personal information to ensure they are eligible to claim the new tokens.
The announcement regarding token equity stakes aligns with a shift in the regulatory landscape for cryptocurrency companies, which may lead to increased opportunities for growth and innovation within the industry.
