Backpack, a cryptocurrency exchange that operates on the Solana blockchain, recently announced the successful completion of its Series A funding round, raising $17 million. This investment boosts Backpack’s total valuation to $120 million.
Placeholder VC spearheaded the funding initiative and saw contributions from various strategic investors. These include Hashed, Robot Ventures, Amber Group, Wintermute, Jump Crypto, Selini Capital, Delphi Digital, and prominent founders from Web3 ecosystems like Solana and Tensor. The announcement was made in a press release shared with Cointelegraph on February 28.
Armani Ferrante, the founder and CEO of Backpack Exchange, expressed optimism about the future, highlighting the company’s commitment to integrity and compliance. Ferrante stated, “The finance history is littered with scandals, but Backpack is doing things differently. Over the past year, we’ve set the foundation to build a crypto-native financial institution. With the conclusion of this round, with trust minimization and compliance as foundational principles, we begin a new chapter for ourselves and, hopefully, for the rest of the industry.”
Operating a cryptocurrency exchange requires significant financial resources, according to Ferrante. The newly acquired funds will support Backpack’s goal of expanding its operations globally compliantly. In an exclusive interview with Cointelegraph on February 27, Ferrante shared plans for using the investment, which includes global expansion and product development, though specific details were kept under wraps.
As of February 28, Backpack ranks as the 91st largest exchange globally based on daily trading volume, boasting a 24-hour trading volume of $312 million. This is compared to industry giants like Binance, with over $26.3 billion in daily trading volume, and Bybit, with $4.5 billion in daily trading volume. Notably, Backpack experienced a significant milestone on February 18, surpassing $1 billion in 24-hour volume shortly after launching its trading pre-season, a feat Ferrante attributes to the growing demand for reliable exchanges within the evolving crypto sector.
The Backpack ecosystem encompasses various products, including exchange, a noncustodial wallet, and the Mad Lads non-fungible token (NFT) collection. The latter stands as the fifth most extensive Solana-native NFT collection, with an impressive all-time sales volume exceeding $119 million, according to CryptoSlam data.
