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Armani Ferrante, a longstanding contributor to Solana, and his crypto wallet and exchange company Backpack have successfully secured $17 million in a funding round led by Placeholder VC.

According to CoinDesk, Ferrante's funding brought Solana's valuation to $120 million, as detailed in a press release.

Despite being only a few weeks old, the exchange has already witnessed substantial trading volumes, particularly in Asia, the Middle East, and the United States. The newly raised capital will be instrumental in covering regulatory compliance and licensing expenses as Backpack seeks to expand its operations globally.

The Series A funding marks a significant milestone for Backpack, especially considering its challenges after its major backer, FTX, collapsed, leaving the startup in a risky position with most of its initial funding lost.

In response, Backpack resorted to innovative strategies, including an NFT-based fundraiser and selling its claim to FTX deposits.

Co-founder Tristan Yver and Ferrante, who were both part of FTX/Alameda before its collapse, collaborated with Can Sun, FTX's former top lawyer, to establish an exchange to fill the gap left by FTX's demise.

Yver emphasized the pivotal role of exchanges as the primary entry point for individuals entering the crypto space, highlighting the significant traction Backpack has gained since its recent launch.

How Does Backpack Crypto Exchange Work?

In terms of its operational structure, Backpack adopts a blockchain-inspired approach to meticulously record every transaction and trade.

This ensures transparency and accountability, especially in light of recent issues surrounding disappearing customer deposits at other exchanges like FTX.

Before securing venture funding, Backpack relied on a modest $1.4 million generated from the sale of the Mad Lads NFT, which helped popularize its wallet app and facilitated the engagement of on-chain traders and collectors.

Despite concerns about trading fee accumulation among certain traders, Yver maintained the importance of fairness and transparency in Backpack's operations, striving to build a sustainable and trusted ecosystem within the crypto space.