The crypto community was left feeling uneasy by FTX’s collapse, which also impacted how the market developed in the years that followed. Since then, the cryptocurrency market has experienced better times, and the environment for recently established projects is more stable.
FTX’s downfall may still impact some projects as former associates struggle to regain trust post-bankruptcy.
Together with Armani Ferrante, a former software developer at Alameda Research, and other FTX company executives, Can Sun, the former general counsel of FTX and a pivotal witness in SBF’s criminal trial, founded a new cryptocurrency exchange.
The Block’s Newest Crypto Exchange
Backpack, a new cryptocurrency exchange, announced in an X post that it is launching in eleven US states and territories this Wednesday. Former executives from FTX and Alameda Research founded Backpack.
Backpack is a centralized regulated exchange (CEX) that operates in various jurisdictions across the globe. It has plans to expand to multiple countries in the coming years.
The Virtual Asset Service Provider (VASP) license issued by the Dubai Virtual Assets Regulatory Authority (VARA) is used by the exchange situated in Dubai. Backpack can operate in any jurisdiction thanks to the framework provided by VARA, the world’s first independent regulator for virtual assets.
Trek Labs is, therefore, permitted to serve “institutional investors, qualified investors, and retail investors” under the terms of the VASP license.
Backpack Exchange is open to California, Colorado, Indiana, Missouri, New Hampshire, Pennsylvania, Tennessee, Utah, Virginia, the Virgin Islands, Wisconsin, and Wyoming residents. It is presently in beta, according to the announcement.
Only spot trading is currently available on the platform. Still, as stated on Backpack’s support website, margin trading, derivatives, cross-collateral, and other advanced trading features are scheduled to be added soon.
We are starting the process of introducing @Backpack Exchange to the United States today.
Movement will be gradual, stability will persist, and obstacles will be present.
USA
Welcome to Backpack Exchange.
We're going live in 11 states. pic.twitter.com/k1a0SR0yQG
— Backpack ? (@Backpack) February 21, 2024
— February 21, 2024, Armani Ferrante (@armaniferrante)
constructing a brick of trust Through Brick
Ferrante, CEO of Backpack, asserts the exchange prioritizes openness and investor confidence through strict guidelines and policies.
We set high expectations and uphold stringent standards, committed to complying with financial regulations and innovating cryptographic solutions for institutions.
Sun and Ferrante aim to protect customers’ holdings and enhance transparency by learning from FTX’s past shortcomings with fund security.
The website asserts that the exchange operates on a private blockchain tailored for cryptocurrency exchange operations. Additionally, with Backpack’s technology, users can maintain their cryptocurrency wallet securely in “self-custody,” ensuring it remains inaccessible to the exchange.
Independent nodes secure transactions, enhancing security. Customers can always verify their holdings.
Sun emphasized the necessity of trust and transparency to establish a genuine alternative in the post-FTX landscape.
Ferrante expressed his enthusiasm for the upcoming journey in an X post by stating, “It’ll be slow.” It will remain constant. It will be challenging. Despite the lengthy timeframe, the team remains committed to meticulously completing the project, “brick by brick,” ensuring its worthiness.
