Behind 25% TGE: Backpack is betting on a "listing narrative"

Author: 137Labs

25% at TGE, 24% allocated to users, unlocking linked to IPO—Backpack’s tokenomics design is challenging traditional exchange token issuance logic. From starting as a wallet and NFT community, obtaining regulatory licenses, acquiring European entities, to tying tokens to listing expectations, Backpack is betting not just on traffic but on a capital markets narrative. Is this a structural innovation or a high-risk pricing experiment? This article deeply analyzes its team background, development path, and token model.

While most exchanges are still designing token models around fee discounts, buybacks and burns, and ecosystem incentives, Backpack has chosen a completely different path.

Total supply: 1 billion tokens.

25% released at TGE.

Token structure is deeply tied to IPO process.

This is not just a token distribution plan but an experimental model blending corporate capital structure with token economics.

Viewing Backpack’s development history, team background, compliance path, and this token design together reveals a more core question:

Is Backpack really issuing tokens, or is it pre-setting equity logic for a future publicly listed digital asset company?

1. Development Path: From Wallets to Exchange in Three Phases

Backpack’s origin isn’t an exchange but a wallet product built around xNFTs.

First phase: xNFT and Web3 Application Container

Early on, Backpack’s core selling point was supporting executable NFTs (xNFTs).

This design allows developers to embed application logic into NFTs, turning the wallet into a container capable of running Web3 applications.

At that stage, it was more a tech-driven infrastructure company than a financial platform.

Key points:

· Developer ecosystem

· On-chain application distribution

· User operating system

This is a product-driven starting point.

Second phase: Mad Lads and Community Assets

The launch of Mad Lads NFTs marked a key turning point.

It not only became a representative NFT project in the Solana ecosystem but also established an active community asset pool for Backpack.

Strategic significance at this stage includes:

· Building identity systems

· Gathering core users

· Creating brand assets

This marks a transition from “tool product” to “platform ecosystem.”

Third phase: Exchange and Regulatory Expansion

Once Backpack obtained regulatory approval and officially launched exchange operations, the narrative shifted fundamentally.

It was no longer just a wallet.

It became a centralized trading platform with a compliant identity.

This phase signifies:

· Entering a highly regulated track

· Assuming asset security responsibilities

· Direct market competition

Shifting from a tech company to a financial platform is a critical step in its valuation logic.

2. Team Background: Entrepreneurs from the FTX Era

Backpack founder Armani Ferrante previously worked at Alameda Research, and some team members have backgrounds connected to the FTX ecosystem.

Post-FTX collapse, “former FTX background” became a sensitive label.

Backpack’s approach isn’t avoidance but building credibility through action.

During the European business restructuring, Backpack participated in acquiring related entities and advancing user asset refunds. This is both a business move and a credibility repair.

This gives the team three unique traits:

· Deep understanding of exchange mechanisms

· Realistic awareness of risk control failures

· High sensitivity to compliance and regulation

This complex background makes its path lean more toward a prudent financial institution rather than a reckless expansion-focused exchange.

3. Fundraising and Capital Narrative: Changing Valuation Logic

As the exchange business advances and licenses are obtained, Backpack’s valuation logic shifts.

From:

“Wallet + NFT project”

To:

“Regulated exchange + potential unicorn platform”

At this stage, the core variable determining long-term value is no longer on-chain activity but:

· Actual trading volume

· Market share

· Regulatory expansion capacity

· Profitability model

This also lays the foundation for subsequent token structure design.

4. Token Economics Breakdown: Three-Phase Structure Tied to IPO

Backpack’s total supply is 1 billion tokens, but the focus isn’t just on quantity—it’s on the distribution structure.

The entire model is divided into three clear phases:

1. TGE (Initial Distribution)

2. Pre-IPO (Pre-Listing Phase)

3. Post-IPO (Post-Listing Phase)

This is a token system built around the company’s development timeline.

First phase: TGE — 25% initial release

At the token generation event, 25% of the total supply (250 million tokens) are released.

Specifically:

· About 240 million allocated to staking and participation rewards

· About 10 million allocated to Mad Lads NFT holders

This phase essentially settles early user behaviors.

The points system rewards trading, activity, and ecosystem participation, eventually converting into real tokens. NFT holders, as early supporters, receive additional incentives.

This design emphasizes community attributes and means initial circulating supply is mainly held by users.

However, it also inevitably creates some potential sell pressure after TGE.

Second phase: Pre-IPO — 37.5% unlocked upon growth triggers

This accounts for 37.5% (~375 million tokens) of total supply.

Unlocks are not linear over time but based on growth triggers.

Token unlocks are linked to company development milestones, including:

· Regulatory progress

· Market access breakthroughs

· Product line expansion

· Integration of new asset classes

Strategically, expansion targets may include:

· Equity-like assets

· Banking card systems

· Precious metals products

· Major jurisdictions like the US, EU, Japan

Note that this portion of tokens is also fully allocated to users.

In other words, before IPO, 62.5% of total supply will have entered the community system.

Third phase: Post-IPO — 37.5% held in company treasury

Remaining 37.5% of tokens are locked in the company treasury.

Key features:

· Fully locked before IPO

· Still locked for one year after IPO before becoming liquid

More importantly, the team and investors do not have separate early token allocations.

They gain exposure through the company treasury, which is tied to the listing process.

This means:

· Internal interests are deferred

· Tied closely to a long-term compliant path

Overall, this three-phase structure has distinct characteristics: over 60% of tokens before listing are distributed via airdrops and growth incentives to the community, while team and investor interests are delayed and linked to IPO timing. Internal token liquidity is significantly compressed, with short-term sell pressure mainly from users rather than insiders. The model isn’t designed around market cycles but around regulatory progress and capital market pathways, with the key value realization depending on whether the company can continue expanding and ultimately complete its listing narrative.

5. Backpack’s Core Proposition: Exchange or Future Public Company?

Regulatory licenses, European expansion, IPO-linked token structure, high user allocation—these elements form a clear direction.

Backpack is more like a global compliant digital asset financial firm.

Tokens are no longer just fee tools but part of the company’s growth narrative.

This is an attempt to blend traditional exchange models with capital market structures.

6. Risks and Strategic Play

Any high-narrative structure comes with high risks.

Initial circulation pressure

A 25% circulating ratio is not low; if valuation pricing is high, the market will face sell pressure.

IPO uncertainty

Delays or failure to go public weaken the core anchor of the lock-up logic.

Regulatory environment shifts

Global regulation is still evolving; cross-jurisdictional expansion involves variables.

7. Conclusion: A Bet on Future Pricing Power

Backpack’s token design isn’t just airdrops.

It’s a structural experiment:

· 24% to realize early traffic

· 75% locked for future timing

· Connecting tokens to company growth via IPO expectations

This is a “time for space” strategy.

If platform trading volume continues to grow and compliance pathways advance steadily, the token could become a reflection asset of the company’s expansion.

If growth stalls or narratives falter, the high circulating ratio will amplify market volatility.

Backpack’s bet isn’t just on successful issuance.

It’s trying to answer a bigger question:

In an era of tightening regulation and returning to rational capital markets,

Can crypto exchanges use token structures to evolve into truly financial institutions?