TLDR
- Backpack Exchange will let users who stake its token for 1+ year exchange those tokens for company equity
- 20% of Backpack’s equity is set aside for token stakers
- 62.5% of tokens go to users first, with team and investor allocations coming after a potential IPO
- The company is in talks to raise $50 million at a $1 billion valuation
- CEO Armani Ferrante, a former Alameda Research employee, says the model is designed to avoid the “false promises” of past token launches
Crypto trading platform Backpack Exchange has announced that users who stake its upcoming token for at least one year can exchange those tokens for equity in the company.
CEO Armani Ferrante made the announcement on X on Monday. He said 20% of the company’s current equity has been set aside for the program.
I didn't come into crypto 9 years ago to launch a shit coin.
I didn't come into crypto to get rich quick.
I came into crypto because I believe it's going to change the world, and that the industry was something worth dedicating my life to.
But somewhere along the way, amidst… https://t.co/Iddz4za7i0
— Armani Ferrante (@armaniferrante) February 23, 2026
The move comes as Backpack works toward a potential US IPO. The company has not yet set a date for its Token Generation Event (TGE).
Backpack plans to release 25% of the token’s total supply of one million tokens at launch. That initial batch will go to users who participated in a points campaign or hold Mad Lads NFTs.
20% of Backpack equity given to users who stake for a year.
Don't just use the next big thing.
Own it. 🎒 pic.twitter.com/whdGUQ0XyH
— Backpack 🎒 (@Backpack) February 23, 2026
Points were earned through trading activity and seasonal programs on the platform. No token sales have taken place, according to the company.
Another 37.5% of tokens are tied to Backpack’s corporate treasury and linked to a potential IPO. The remaining supply will unlock post-IPO for team members and investors.
The structure flips what Ferrante described as a broken model, where insiders receive large early allocations and predictable sell pressure falls on retail users.
“I’m just tired of false promises,” Ferrante wrote on X. He said past token launches often claimed utility that never materialized.
How the Equity Swap Works
Users must stake the Backpack token for a minimum of one year to qualify. They can then exchange their staked tokens for equity at a fixed ratio.
Ferrante acknowledged the setup starts out relatively centralized. He said plans are in place to progressively decentralize as the product develops.
Backpack was founded in 2022. Ferrante previously worked at Alameda Research, the trading firm tied to FTX, before both collapsed in November 2022.
Fundraising and Expansion
Backpack is currently in talks to raise $50 million at a pre-money valuation of $1 billion, according to a report by Axios earlier this month. That would make it a unicorn startup.
The exchange is already operating under regulatory frameworks in the Middle East and Europe. It is live in more than a dozen US states, with plans to expand nationally.
In October, Backpack partnered with SEC-registered transfer agent Superstate to bring tokenized stocks onchain.
The company asked users last week to verify their personal information to determine eligibility for claiming the token.
Backpack’s token-equity announcement comes as crypto companies are operating in a more favorable US regulatory environment following changes in SEC leadership.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
