Backpack

Welcome to the world of Web3, where cryptocurrencies, blockchain, and a unique culture converge. Entering the world of Web3 can be both thrilling and overwhelming, especially when faced with the seemingly cryptic language used by enthusiasts. Don't worry if you feel they sound like some secret codes, we are here to unravel their meaning. In this article, we are going to introduce [Backpack].

Backpack in the Web3 context is not about the physical item you carry on your shoulders; instead, it’s a Solana-based NFT wallet app that provides users a smooth way to manage assets and NFTs within the Galxe web3 community. This innovative platform tailored for Solana enthusiasts is a comprehensive web3 application that operates as a noncustodial wallet. It enables users to purchase, store, sell, and exchange cryptocurrencies, along with engaging with xNFTs, a widely recognized NFT standard that tokenizes applications.

Behind the scenes, Backpack utilizes technology similar to blockchains—the decentralized ledgers that record cryptocurrency transactions—to meticulously chronicle its own operational history "from the very start." Essentially, this acts as a safeguard against any manipulation of financial records. This level of transparency and accountability has become increasingly crucial for crypto exchanges, especially in the wake of incidents like FTX’s collapse, where customer deposits vanished under dubious circumstances.

Before securing venture capital, Backpack operated on a tight budget of $1.4 million, funds raised from the sale of the Mad Lads NFT last April, which has since risen to become Solana’s premier digital collectible. The event did more than just raise capital; it also boosted the popularity of Backpack’s namesake wallet app, capable of accessing advanced NFTs, known as xNFTs, which can execute code internally.

Additionally, the Mad Lads minting event provided Backpack with an immediate base of on-chain traders and collectors. These users have been instrumental in driving sometimes billions of dollars in daily trading volumes on Backpack's exchange, despite its relative initial stage.

In summary, Backpack signifies a progressive step forward in web3 exchanges and cryptocurrency wallets, providing an extensive array of features designed specifically for Solana enthusiasts. Whether you are an avid NFT collector or just starting to explore the capabilities of blockchain technology, Galxe welcomes you to join the Backpack community and dive into the dynamic world of decentralized finance (DeFi) and digital assets

The Solana-based Backpack crypto exchange has quickly gained traction with its pre-season beta launch, achieving $1 billion in trading volume on February 18, as reported in the exchange's official X post. The exchange kicked off its pre-season beta on February 13, with user trading volumes being utilized to establish their "rank" within the platform.

On February 18, Backpack's primary SOL/USDC trading pair alone accounted for more than $800 million in 24-hour trading volume, surpassing the SOL/USDC pairs on major centralized exchanges. This early lead suggests promising potential, though its long-term viability is yet to be determined.

Enhancing its reputation further, in October 2023, Backpack obtained a virtual asset service provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA). Along with additional operational licenses secured in the latter half of 2023, these developments underscore the exchange’s dedication to adhering to regulatory standards and ensuring compliance.

On February 28, Backpack revealed it had secured $17 million in Series A funding, in a round spearheaded by Placeholder VC, setting the startup's valuation at $120 million. Additional investors in this round include Jump Crypto, Delphi Digital, Wintermute, Hashed, Robot Ventures, Selini Capital, Amber Group, and several angel investors.

Back at the end of 2022, Backpack, also known as Coral, successfully raised $20 million in seed funding from FTX Ventures, shortly before the collapse of that exchange. Soon after, the startup discovered that a significant portion of its funds was trapped on FTX’s now-inaccessible platform, which caused immediate financial challenges.

Despite these obstacles, Backpack continued to push forward, launching the Mad Lads project in the following spring. This initiative revitalized the dwindling Solana NFT market and introduced the Backpack wallet, which supports executable NFTs or “xNFTs.” These xNFTs allow creators to integrate content and experiences directly with blockchain tokens. Nearly a year on, Mad Lads has become the most valuable NFT project on Solana.

Over the past year, Backpack's ambitions have significantly expanded. In October, the startup secured a Virtual Asset Service Provider license from the Dubai Virtual Assets Regulatory Authority (VARA) for Exchange Services and announced plans to launch a regulated exchange aimed at global expansion.

The exchange has recently gone live in 11 states across the United States. Backpack is also pursuing licensing in Japan. Currently supporting Solana trading, Backpack plans to add support for Ethereum and Bitcoin as well. It aims to avoid the issues that led to the downfall of FTX and tarnished Binance's reputation. Backpack's model is more akin to Coinbase but with a newer perspective.

This announcement of Backpack’s fundraising and its expansion plans coincides with a surge in the cryptocurrency market. Bitcoin and other leading cryptocurrencies have reached multi-year highs, and the approval of spot Bitcoin ETFs in the United States has further boosted demand for cryptocurrencies.