Former FTX and Alameda Research Employees Raise $17M for Crypto Exchange Backpack
A crypto startup called Backpack, led by former employees of FTX and Alameda Research, has secured $17 million in a series A funding round. The funding round valued the company at $120 million and saw participation from venture capital firms like Wintermute and Amber Group. Backpack, founded by Armani Ferrante and Can Sun, is a Dubai-based crypto exchange that was launched in October last year. Ferrante, who previously worked at Alameda, serves as the CEO of Backpack.
Raising Funds for a New Crypto Exchange
Backpack, a crypto exchange founded by ex-FTX and Alameda Research employees, has raised $17 million in a series A funding round. The funding round valued the company at $120 million and attracted investment from venture capital firms such as Wintermute and Amber Group.
The Founders and Their Backgrounds
Backpack is co-founded by Armani Ferrante and Can Sun. Ferrante, who is currently the CEO of Backpack, was an early employee at Alameda Research. Sun previously worked as the general counsel for FTX and testified as a government witness in Sam Bankman-Fried’s fraud case.
Building a Crypto Exchange Post-FTX Saga
Ferrante acknowledges that there are higher expectations and scrutiny when it comes to building a crypto exchange after the FTX saga. Initially, investors were hesitant to invest in Backpack due to the fallout from FTX’s collapse. However, things have improved since last year’s conviction in a New York courthouse.
Backpack: A Growing Crypto Exchange
Backpack is a Dubai-based crypto exchange that has already onboarded 420,000 users worldwide. The exchange has recorded $6.5 billion in one-way trading volume this month and is experiencing demand in Asian markets as it aims to capture market share left behind by FTX.
Filling the Gap for Professional Traders
Other firms, such as EDX Markets, are also entering the market to cater to professional traders, one of FTX’s primary customer bases. EDX Markets, backed by Fidelity, launched in 2023 and plans to expand into Singapore.
Challenges for the Founders
While Ferrante and Sun are moving forward with Backpack, Sam Bankman-Fried, the former CEO of FTX, is facing repercussions following a guilty verdict. Bankman-Fried has pleaded with a judge to reduce his sentence to a maximum of six-and-a-half years, citing his autism and expressing remorse for the $8 billion fraud.
Upcoming Sentencing
The length of Bankman-Fried’s sentence will be determined by federal prosecutors, who will publish their recommendation on March 15. The sentencing is scheduled for March 28.
🔥 Hot Take: Backpack Aims to Succeed in the Crypto Exchange Market Despite Challenges 🔥
Backpack, led by former employees of FTX and Alameda Research, has raised $17 million in funding to establish itself as a player in the crypto exchange market. Despite the challenges posed by FTX’s collapse and ongoing legal issues surrounding its former CEO Sam Bankman-Fried, Backpack is making strides towards success:
A Growing User Base
- Backpack has already attracted 420,000 users from around the world.
- The exchange has achieved significant trading volume, reaching $6.5 billion in one-way trading volume this month.
- There is a growing demand for Backpack in Asian markets, presenting an opportunity for the exchange to capture market share left behind by FTX.
Filling the Gap
- Backpack aims to cater to professional traders, a customer base that was previously served by FTX.
- Other firms, such as EDX Markets backed by Fidelity, are also entering the market to meet the needs of professional traders.
- This indicates a potential market gap that Backpack and similar exchanges can fill.
Overcoming Challenges
- Despite the higher expectations and scrutiny faced by Backpack due to FTX’s saga, the exchange has managed to secure significant funding and investor interest.
- The conviction of individuals involved in FTX’s illegal activities has helped improve investor sentiment towards Backpack.
In conclusion, Backpack is positioned to succeed in the competitive crypto exchange market. With a growing user base, increasing trading volume, and a focus on meeting the needs of professional traders, Backpack has the potential to become a major player in the industry.
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