New Crypto Exchange Backpack Launches in the US
Former FTX and Alameda Research executives have come together to create a new crypto exchange called Backpack. The exchange announced that it has started operations in eleven US states and territories, with plans to expand to more countries in the future. Backpack is a regulated centralized exchange (CEX) based in Dubai and operates under the Virtual Asset Service Provider (VASP) license granted by the Dubai Virtual Assets Regulatory Authority (VARA). This license allows Backpack to serve institutional investors, qualified investors, and retail investors. Currently, the exchange is in beta and offers spot trading, with other advanced trading features coming soon.
Building Trust Through Transparency
Backpack aims to prioritize transparency and investor trust, learning from the failures of FTX. The exchange’s CEO, Armani Ferrante, stated that their standards are rigorous and they are committed to following financial rules while leveraging cryptography for trust minimization. The exchange is built on a private blockchain specifically designed for running a crypto exchange. Users will have their own self-custody crypto wallet that is not accessible by the exchange. Additionally, independent nodes on the network validate all transactions for added security. Trust and transparency are crucial for Backpack to establish itself as a true alternative in the post-FTX world.
Hot Take: A Promising Venture with Challenges Ahead
With its focus on transparency and user trust, Backpack has the potential to become a successful crypto exchange. However, it will face challenges along the way. Building trust takes time, especially after the collapse of FTX. Nevertheless, Ferrante expressed his team’s commitment to doing things right “brick by brick.” It remains to be seen how Backpack will navigate the competitive crypto market and win over users. As a crypto enthusiast, you should keep an eye on Backpack’s progress and see if it lives up to its promises of trust and transparency.
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