Backpack announces token launch with IPO-linked unlocks

Backpack has announced the launch of its native token with a total supply of 1 billion, structured around a distribution model directly tied to the company’s goal of pursuing a U.S. IPO. At launch, 25% of the supply – 250 million tokens – will be available, while all subsequent unlocks will depend on hitting core operational milestones.

Another 37.5% of the supply (375 million tokens) will unlock only after Backpack meets major product and geographic expansion targets, such as entering new markets or rolling out additional services. The final 375 million tokens will remain locked until the IPO – and then for an additional year – staying in the corporate treasury until the project reaches sufficient maturity.

Co-founder and CEO Armani Ferrante emphasized that Backpack’s tokenomics were built to make an “insider dump” impossible. He stated that no team member, executive, or venture investor received any token allocation. Instead, all insiders hold only equity in the company, not tokens – meaning they cannot profit until Backpack goes public.

Ferrante, a former Alameda Research engineer, added that the team will earn from the token only once the product reaches “escape velocity” – a point of sustained scale and adoption. He noted that an IPO could happen quickly, slowly, or not at all, but said the company is “committed to seeing it through.”

The token launch comes as Backpack is reportedly in talks to raise $50 million at a $1 billion valuation. If completed, the exchange would become one of the new crypto unicorns emerging after the industry’s restructuring and increased regulatory scrutiny.

Backpack was founded in 2022 by Ferrante, former FTX.US head of strategy Tristan Yver, and former FTX general counsel Kan Sun. The exchange is also expanding its product ecosystem, including a prediction-market platform now in testing.

Backpack’s token distribution model is already drawing analyst attention: the company is designing a structure in which the token functions as a growth and long-term value tool, not a vehicle for insider enrichment. The approach sharply contrasts with much of the industry, where early insiders often receive large allocations before a product reaches the market.