Solana-based crypto exchange Backpack has announced the closure of a strategic Series A funding round worth $17 million, achieving a combined valuation of $120 million. According to a press release dated February 28, the funding round was led by Placeholder VC and included participation from other strategic investors such as Hashed, Robot Ventures, Amber Group, Wintermute, Jump Crypto, Selini Capital, Delphi Digital, as well as key players from Web3 ecosystems like Solana and Tensor.
Armani Ferrante Comments on the New Funding
Backpack Exchange‘s founder and CEO Armani Ferrante believes the new funding round marks the beginning of a new chapter for the crypto industry. Ferrante wrote regarding the matter:
“Financial history is full of scandals, but Backpack does things differently. Over the past year, we have laid the foundation for building a crypto-specific financial institution, and with the completion of this round, we are starting a new chapter based on fundamental principles of trust minimization and compliance, for ourselves and hopefully the rest of the industry.”
According to Ferrante, crypto exchanges are capital-intensive. Ferrante, in an interview on February 27, said the new funds would be used to continue the exchange’s compliant expansion worldwide:
“There are a number of things we want to use the funds for, including global expansion and product development, but I don’t want to say too much.”
Backpack Team’s Impressive Achievement
Backpack, as of February 28, has a 24-hour trading volume of $312 million, currently ranking as the 91st largest exchange in the world by daily volume. In contrast, according to CoinGecko data, the world’s largest crypto exchange Binance records over $26.3 billion in 24-hour trading volume, while Bybit is the second-largest exchange with $4.5 billion collected.
Backpack surpassed $1 billion in 24-hour volume within four days after the start of preseason transactions on February 18. In a statement, Ferrante said the exchange’s success is proof of the maturing crypto industry demanding more reliable exchanges.
CryptoSlam data indicates that the Backpack ecosystem currently comprises multiple products, including the Mad Lads NFT collection, which is the fifth-largest Solana NFT collection of all time, valued at over $119 million.
