Backpack Yields $20 Million in Funding Round Led by Placeholder VC

Backpack Yields $20 Million in Funding Round Led by Placeholder VC

The renowned crypto exchange Backpack has yielded $17 million in a series A funding round. The successful funding round propelled the Backpack’s value to $120 million.

The funding round was led by Placeholder VC in collaboration with Robot Ventures. Other investors participating in the Backpack fundraising included the Amber Group, Jump Crypto, Selini Capital, Delphi Digital, and Wintermute.

Backpack Net $20M in Series A Funding Round

Also, the funding round was supported by investors from the Web3 industry, including Solana and Tensor. A statement from the chief executive of Backpack, Armani Ferrante, confirmed that the new funding round marked a significant milestone for the crypto industry.

Citing the recent turn of events in the finance sector, the CEO argued that the Backpack team seeks to do things differently. The executive admitted that the Backpack team has been seeking to build a crypto-oriented financial institution for years.

The official admitted that for Backpack to attain the desired objective, it was essential to reevaluate its core principles, such as compliance. Ferrante remains optimistic that Backpack will enter a new chapter with the latest investment.

The CEO described crypto exchanges as financial institutions with high capital intensive. Having worked in the crypto industry for the longest time, Ferrante understands crypto exchange challenges.

In her previous role, Ferrante worked at Alameda Research before he started Backpack. During the inception of Backpack FTX, Ventures led the crypto exchange in a $20 million seed funding round.

Backpack Seeks to Expand Market Coverage

In his statement, the executive argued that the new funding will assist the Backpack team in upholding compliance. He explained that the funds would be used to run various businesses.

Ferrante stated that the fresh funding will be used for Backpack’s global expansion and product development. He believes the new capital will enable Backpack to gain considerable market share.

At the moment, Backpack is ranked among the top 100 crypto exchanges by daily trading volume. A review of the CoinGecko report demonstrated that Backpack trading volume reached $312 million on February 28.

The CoinGecko report demonstrated that Backpack trading volume reached $1 billion on February 18. The CEO noted that the impressive increase in Backpack daily trading volume indicated that the crypto market was nearing maturity.

He noted that customers demand trustworthy, reliable, and convenient crypto exchanges. To meet the market demand, the CEO admitted that the crypto exchange has to invest in product development.

Impressive Growth of Mad Lads NFT

A review of the Backpack website demonstrated that the crypto exchange offers end-to-end crypto solutions, including Mad Lads nonfungible tokens (NFT) and noncustodial wallets.

According to CryptoSlam, the Mad Lads ranks among the top five largest NFTs in the Solana ecosystem. The CryptoSlam data demonstrated that Mad Lads’ sales volume reached $119 million.

The reportThe report indicates that Mad Lads was launched early last year to redefine the Solana NFT market. After the launch of the Mad Lads, the Backpack team invested heavily in promoting Mad Lads.

In an earlier interview, Ferrante confessed that he had never imagined that Mad Lads would attain such growth. The executive noted that Mad Lads emerged among the valuable NFT projects in the Solana ecosystem for nearly a year.

The impressive growth of the Mad Lads on Solana encouraged the Backpack team to consider supporting other networks, such as Ethereum and Bitcoin. The CEO confessed that Mad Lads will support Ether and BTC in the future.

Since last year, Backpack has witnessed massive growth, followed by significant expansion. In October, the Backpack team secured the approval of a virtual assets service provider (VASP) license in Dubai.

The approval of the Backpack VASP license allowed the crypto exchange to operate as a regulated entity in the Middle East region. Currently, Backpack has established shops in various states across the United States.

The CEO confessed that Backpack seeks to expand its footprint outside the US to seize viable opportunities in offshore markets.

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