Ever wondered what happens to the team after a crypto giant like FTX crumbles? Well, some of them are not just dusting themselves off – they’re building something entirely new! Former employees from FTX and Alameda Research are back in the game, and they’ve just landed a cool $17 million to launch their own cryptocurrency exchange: Backpack. Talk about resilience in the wild world of crypto!
In a landscape still feeling the aftershocks of FTX’s dramatic downfall, Backpack is stepping up, aiming to fill the void and perhaps, redefine the future of crypto trading. Let’s dive into what Backpack is all about and how it plans to navigate the complexities of the crypto world.
What is Backpack and Why Should You Care?
Backpack isn’t just another crypto exchange popping up overnight. Having secured a solid $17 million in Series A funding, it’s valued at a whopping $120 million right out of the gate. But it’s more than just an exchange. Think of it as a crypto ecosystem, boasting:
- A Cutting-Edge Crypto Exchange: Designed for today’s crypto demands, especially in a post-FTX world.
- Mad Lads NFT Collection: Venturing into the popular world of Non-Fungible Tokens.
- Digital Wallet Platform: Providing users with tools for secure crypto management.
This funding round was spearheaded by Placeholder VC, known for their web3 expertise, with significant participation from Hashed, Robot Ventures, Amber Group, Wintermute, and Selini. Big names backing a project led by, yes, former FTX and Alameda folks. Intriguing, right?
Backpack: Learning from the Past to Build the Future?
Founded by Armani Ferrante and Can Sun, Backpack officially launched in October of last year, almost a year after the FTX earthquake. Let’s look at the backgrounds of these key players:
| Founder | Past Role | Current Role |
|---|---|---|
| Armani Ferrante | Early Employee at Alameda Research, Solana Contributor | CEO of Backpack |
| Can Sun | General Counsel for FTX | Co-founder of Backpack |
Can Sun’s past is particularly noteworthy. As FTX’s general counsel, he even testified as a government witness in the Sam Bankman-Fried trial, claiming unawareness of the misuse of customer funds. Now, he’s co-founding a new exchange, aiming to build trust and transparency in an industry that desperately needs it. Interestingly, among Backpack’s 40 employees, five are also ex-FTX personnel.
Despite their FTX and Alameda connections, Ferrante, Sun, and their team seem to be charting a new course. They’ve already garnered a global user base of over 420,000 and secured a virtual asset service provider license in Dubai – a significant regulatory win.
And here’s the kicker: Backpack’s crypto exchange is now live in the United States! Alongside the Mad Lads NFT collection and their digital wallet, they’re building a comprehensive crypto platform.
Ferrante himself highlights a crucial point: launching a crypto exchange today is a different ballgame than it was just a couple of years ago. The standards have skyrocketed, especially after the FTX fallout. This suggests Backpack is built with a stronger focus on compliance, security, and user trust.
Backpack isn’t alone in spotting opportunities in the post-FTX landscape. Other ventures are also emerging, including:
- EDX Markets: Launched last year and expanding into Singapore, backed by financial giants like Citadel Securities and Fidelity Digital Assets.
- Rulematch: Launched in Europe in December, targeting financial institutions.
What’s the Latest on the Sam Bankman-Fried Case?
While Backpack is looking forward, the shadow of FTX and Sam Bankman-Fried (SBF) still looms large. In a recent development, SBF’s legal team is arguing for a significantly lighter sentence – a maximum of six and a half years – compared to the probation officers’ recommendation of a century behind bars. They’re portraying SBF as a “misunderstood first-offender.”
Meanwhile, inside the Metropolitan Detention Center in Brooklyn, where he’s been held since last summer after his conviction, SBF is reportedly still active in the crypto space, allegedly promoting Solana (SOL) investments! Talk about staying in the game.
SBF’s defense is even citing his “autism” as a reason for leniency, alongside expressing apologies for the $8 billion FTX debacle. He’s pleading for a sentence capped at six and a half years.
The legal proceedings are moving forward, with federal prosecutors set to release their sentence recommendation on March 15th, and the final sentencing scheduled for March 28th. The crypto world, and beyond, will be watching closely.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.