Backpack founder Armani Ferrante recently discussed his company’s upcoming token launch. He criticized many past token launches for being built on “false promises” of utility. Ferrante stated he wanted to avoid this pitfall and offer a different structure that shows long-term commitment.
Ferrante expressed his belief that crypto can change the world. However, he said the industry lost its way amid booms, busts, and scams. He stated he is tired of false promises. Backpack’s plan is to anchor its new token’s value directly to company equity.
Backpack first announced its token launch plan in a post on X earlier this month. The tokens are intended to be unlocked in stages as the company moves toward a potential initial public offering (IPO) in the United States.
The distribution plan prioritizes users. The first 62.5% of Backpack tokens will be distributed entirely to users. The remaining tokens will be unlocked after a potential IPO for the company’s team members and investors.
Backpack was founded in 2022 by Ferrante. He previously worked at Alameda Research, which was linked to FTX. Both entities collapsed in November 2022. While the token generation event date is not set, Backpack recently partnered with SEC-registered transfer agent Superstate to bring tokenized stocks onchain.
Ferrante also criticized the current state of crypto, calling it the most centralized era the industry has ever experienced. He argued that the more centralized something is, the less meaningful a token becomes.
He acknowledged that Backpack’s own token-equity offering would start out relatively centralized. However, he added that plans exist to progressively decentralize the token as the product evolves. Ferrante said he expects the token to eventually represent more than a single company, but this structure is the best short-term way to show commitment to users.
