Backpack unveils 1 billion token plan with 375 million locked until post-IPO

Crypto exchange Backpack plans to unlock just 25% of its 1 billion native tokens at launch, with the remaining 75% tied to pre-IPO business milestones and locked until at least one year after a U.S. public offering—an unusual structure that links token distribution to traditional corporate performance rather than pure market speculation.

A community-first distribution or a controlled liquidity event?

The TGE’s 25% unlock is unusually large, especially compared with many cryptocurrency launches where circulating supply is deliberately kept low to limit volatility.

Most of the initial tranche, 240 million tokens or 24% of the total supply, goes to Backpack Points holders, with 10 million (1%) reserved for Mad Lads NFT owners.

Industry analysts note that such a sizeable day-one release could foster early liquidity, but it also exposes the token to immediate market pressure.

Retail holders might decide to sell soon after release, especially if speculative interest outweighs confidence in long-term fundamentals.

A portion of the crypto community has responded positively, arguing that removing direct allocations for insiders and tying unlocks to real growth metrics distinguishes Backpack’s model from more typical “pump-and-dump” launches where early investors profit ahead of users.

Despite the optimism, the size of the initial supply and the future unlocks remain key factors market participants are evaluating as trading begins.

IPO ambition at the heart of the strategy

Backpack’s tokenomics plan is deeply intertwined with its U.S. IPO aspirations, a path few crypto-native companies have publicly embraced.

According to reporting by Axios, the exchange is in talks to raise US $50 million at a US $1 billion pre-money valuation as it prepares for a public market push.

By locking the majority of tokens in the corporate treasury until after a successful listing, and requiring milestone-linked unlocks before that, Backpack is tying token economics to corporate performance and regulatory progress, rather than purely market speculation.

“This isn’t just about launching a token. We’re building a regulated financial platform with real products and global reach,” said Ferrante in his statement.

Backpack also plans broader traditional finance integration beyond crypto trading, including banking rails, fiat accounts, and securities trading, to align more closely with regulated financial markets and appeal to institutional investors.

Market implications and what comes next

As Backpack moves closer to its TGE with the exact date still undisclosed, investors and analysts are watching several variables:

• Liquidity dynamics from the large day-one unlock and its impact on trading prices.
• Milestone execution that triggers further token releases before any IPO.
• Regulatory developments in key markets such as the US, EU, and Asia.

While there is notable retail interest, including from airdrop traders anticipated to drive early volume, the long-term valuation narrative hinges on whether Backpack can achieve its IPO goals and build regulated financial products beyond crypto exchange features.

Market observers caution that a successful token launch does not guarantee broader adoption or a smooth path to public markets, particularly as regulatory scrutiny continues to intensify globally.

Nevertheless, Backpack’s strategy marks a notable experiment in tying crypto tokenomics to traditional corporate performance metrics and regulatory milestones, potentially setting a precedent if successful.