Backpack to issue 1 billion tokens with release tied to IPO milestones

Backpack, a crypto exchange founded by former FTX employees, plans to launch a token with a total supply of 1 billion. The rollout will begin with 25% of the supply—250 million tokens—becoming available on a launch date that has not been disclosed. A further 375 million pre-IPO tokens will be released upon achievement of key milestones such as opening in a new region or launching a new product, while the remaining 375 million post-IPO tokens will be locked for one year after the company goes public and held in a corporate treasury.

Co-founder and CEO Armani Ferrante said the guiding principle for token unlocks is to make it impossible for insiders to “dump on retail.” He added that neither Backpack’s team nor its investors should gain wealth from the token until the product reaches what he described as escape velocity, which he equated with launching an initial public offering.

Ferrante also noted that going public might happen quickly, might take longer, or might not happen at all, but the company is pursuing that path.

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