Backpack Exchange Review: Licensing, Security & Airdrop Guide

In this article we evaluate the credibility of Backpack Exchange from the perspectives of regulatory licensing, team background, technical security, and other dimensions. We also provide the latest airdrop‑points acquisition routes so readers can quickly decide whether the platform merits attention, as well as an overview of user experience and liquidity performance.

How good is Backpack Exchange? Is it safe? Airdrop‑Points Guide (2025 Update)

What is Backpack?

Backpack Exchange was launched by former FTX executives. The project is led by Can Sun, who served as the chief legal counsel at FTX, and the core team also includes CEO Armani Ferrante, Claire Zhang, and Sun’s former deputy legal counsel. The initiative aims to learn from the collapse of FTX and to offer a safer, more transparent trading model.

The Solana‑ecosystem development studio Coral completed a US$20 million financing round in 2022 and subsequently released the crypto wallet Backpack. In November 2023 the Backpack team announced the forthcoming launch of a regulated crypto exchange—Backpack Exchange—and disclosed that it had obtained a licence from the Dubai Virtual Assets Regulatory Authority (VARA), authorising the provision of crypto services to qualified investors and institutional clients in Dubai.

Because most of Coral’s early‑stage capital was held on the FTX platform, the team later launched the Mad Lads NFT collection to fund operations and explore new projects. Notably, in early 2025 Backpack announced the successful acquisition of FTX Europe.

Note: Taiwanese users who own a Mad Lads NFT can DM @Laura6liu on Telegram to request an invitation to the Mad Lads Taiwan group.

Why the Acquisition of FTX Europe Matters for Backpack

Strategic acquisition

Backpack began negotiations to acquire FTX EU in August 2023. After more than a year of due‑diligence—including assessments of executive credentials, corporate finances, security posture, compliance, and platform technology—the acquisition was completed. The key significance lies in the fact that FTX EU holds the only EU‑approved perpetual‑contract trading licence under MiFID II, giving Backpack a unique advantage in the European crypto‑derivatives market.

European market strategy

• European exchanges account for roughly 20 %–30 % of global crypto trading volume.
• Contract trading represents about 75 % of total European volume.
• The region currently lacks a compliant contract‑trading platform.
• Backpack is positioned to become, in the short term, the sole legally authorised provider of perpetual contracts in Europe.

User compensation plan

Backpack has pledged 100 % compensation to the 110,000 former FTX EU users, with asset repayments slated to begin in February 2025. This commitment showcases the platform’s integrity and simultaneously brings a substantial pool of high‑quality users onto Backpack.

Contract‑product overview (launched February 2025)

1. Integrated contract‑and‑lending system

• “auto‑lend” automatically lends idle collateral.
• Funds can simultaneously earn lending interest and serve as contract margin, boosting capital efficiency and delivering layered returns.

1. Professional trading features

• Cross‑asset collateral support.
• Automated profit‑sharing settlement.
• Full‑featured sub‑account architecture for risk isolation, catering to sophisticated traders.

1. Rigorous risk‑control framework

• Verifiable, sustainable risk‑management mechanisms.
• Built on deep mathematical and technical research to ensure safety and regulatory compliance.

Backpack’s Dual‑Yield Stablecoin Offering: U.S. Treasury + Lending Rate

In May 2025 Backpack introduced a U.S.‑dollar‑equivalent pool, incorporating stablecoins such as USDC to bridge Web 2 and Web 3 finance. When USDC is lent out, users receive a combined return consisting of U.S. Treasury yields plus the platform’s lending rate—approximately 5.56 % APY for the month (4 % Treasury yield + 1.56 % lending rate).

How to participate: Deposit your assets and enable the “lend” option; the combined yield is applied automatically.

Backpack Exchange Airdrop: Season 1 Points Program

Backpack Exchange launched its Season 1 Points Program on 21 March 2025. The 10‑week campaign is designed to reward users who contribute to the platform’s growth. Below are the basic rules and practical tips for earning points.

How does the points program work?

• Campaign period: Starts 21 Mar 2025, runs continuously for 10 weeks, ending roughly at the end of May.
• Points distribution: Every Friday at 02:00 UTC (10:00 am Taiwan time), points are awarded based on the previous week’s activity.
• Eligibility: Use any of the platform’s spot, futures, or lending products.
• Ranking system: Accumulated points are compared against other users; tiers progress from Bronze → Silver → Gold → Platinum → Diamond → King.
• Legacy Drop benefit: A snapshot taken at 09:00 UTC on 20 Mar 2025 will convert activity of users who have been active since the end of 2023 into initial points.
• Flexibility: The team reserves the right to modify the points‑allocation rules at any time; the final interpretation belongs to the platform.

The exact calculation formula has not been disclosed and may change weekly. Consequently, simply “volume‑spamming” is unlikely to secure a top rank; a balanced approach that considers trade frequency, profit‑and‑loss performance, and product breadth yields better results.

Efficient ways to earn points

Here are several cost‑effective strategies for maximizing points:

1. Spot trading – steady points, limit orders preferred

• Choose highly liquid pairs (e.g., SOL/USDT) and place limit (maker) orders. Maker fees range from 0.02 %‑0.05 %, keeping costs low.

1. Futures trading – moderate leverage, controlled risk

• Experienced traders can employ 2‑5× leverage to amplify turnover. For example, a US$1,000 margin with 3× leverage generates roughly US$3,000 of trade volume, potentially raising the point yield. Always set stop‑losses to avoid liquidation.

1. Diversified activities

• Beyond trading, depositing assets into the lending pool or inviting friends can grant additional point bonuses.

1. Automation via scripts

• Advanced users may develop API‑based scripts that submit limit orders every 5‑10 seconds, dramatically increasing order count at a marginal cost (≈0.1 % per order). Be mindful of the platform’s tolerance for mechanised volume; start with small orders to avoid penalties or account suspension.

Tip: Raising your 30‑day cumulative volume upgrades your trading tier, which reduces fees. Refer to the fee schedule below for exact thresholds.

Relationship between points and a potential platform token

The platform has not clarified the exact utility of the points, but industry precedent suggests they could be used for a future token airdrop. Backpack’s valuation is estimated at US$120 million, it holds a Dubai licence, and it has taken over FTX Europe’s operations—indicating substantial backing. Some community members speculate that after Season 1 a token airdrop similar to Hyperliquid’s $HYPE may occur, though Backpack reserves the right to adjust point allocations. Users are advised to allocate capital prudently and stay flexible.

Recommended play‑style

The early weeks of the campaign are relatively less competitive, making them ideal for newcomers. Suggested approaches:

• Beginners: Start with spot limit orders to steadily meet weekly volume targets.
• Seasoned traders: Combine futures trading with modest scripted automation to climb the leaderboard.
• Always monitor fee impact to ensure that transaction costs do not erode earned points.
• Stay updated: Check official announcements each week and adapt your strategy accordingly.

Is Backpack Exchange safe? What are its distinguishing features?

Backpack Exchange’s core philosophy is self‑custody, leveraging multi‑party computation to enhance wallet security. This architecture gives users greater control and visibility over their assets while reducing centralized risk. Key differentiators include:

• Innovative custody model: Multi‑party custodians spread single‑point‑failure risk.
• Team pedigree: Led by former FTX lawyer Can Sun and ex‑Alameda software engineer Armani Ferrante, positioning the platform as wallet‑centric with trading as a secondary function.
• Security mechanisms: Multiple independent custodians jointly manage assets, combined with multi‑party computation to boost overall safety.
• Asset distribution: Funds are stored across several legal entities, which collectively handle trade execution.
• Transparency & trust: Aims to build a transparent, trustworthy centralized‑exchange alternative in the post‑FTX era.

It should be noted that the platform has experienced occasional website downtime; operational stability will need to be observed after the official launch.

Registration and KYC process

1. Visit Backpack Exchange to create an account and verify your email address.

• Passwords must contain upper‑ and lower‑case letters, numbers, and special characters, and cannot include spaces.

1. Complete Know‑Your‑Customer (KYC) verification to comply with anti‑money‑laundering (AML) and sanctions regulations (all information should be entered in English).

• Account type: Choose *Individual*.
• Personal Information: Fill out the required fields (approximately 5 minutes).
• Identity verification: Upload a government‑issued ID and complete facial‑recognition verification.

Important: Certain jurisdictions (e.g., Australia, United Arab Emirates) may require additional proof‑of‑address documentation. Acceptable documents include:

1. Utility bill (gas, water, electricity, internet)

2. Bank statement

3. Credit‑card statement

4. Tax notice or official government correspondence

Backpack Exchange fee schedule

Fees are tiered based on the past 30 days of trading volume and are split into maker (order‑providing) and taker (order‑taking) rates for both spot and futures markets.

| Tier | 30‑day Spot Volume (USD) | Spot Maker Fee | Spot Taker Fee | 30‑day Futures Volume (USD) | Futures Maker Fee | Futures Taker Fee |

|------|--------------------------|----------------|----------------|----------------------------|-------------------|-------------------|

| 1    | $0‑100,000               | 0.08 %         | 0.10 %         | $0‑100,000                 | 0.02 %            | 0.05 %            |

| 2    | $100,001‑500,000         | 0.07 %         | 0.09 %         | $500,001‑1,000,000         | 0.019 %           | 0.045 %           |

| 3    | $500,001‑1,000,000       | 0.06 %         | 0.08 %         | $1,000,001‑5,000,000       | 0.018 %           | 0.040 %           |

| 4    | $1,000,001‑5,000,000     | 0.05 %         | 0.07 %         | $5,000,001‑10,000,000      | 0.016 %           | 0.035 %           |

| 5    | $5,000,001‑10,000,000    | 0.04 %         | 0.06 %         | $10,000,001‑12,500,000     | 0.013 %           | 0.030 %           |

| 6    | $10,000,001‑12,500,000   | 0.03 %         | 0.05 %         | $12,500,001‑25,000,000     | 0.010 %           | 0.028 %           |

| VIP 1| $12,500,001‑25,000,000   | 0.02 %         | 0.045 %        | $25,000,001‑50,000,000     | 0.010 %           | 0.026 %           |

| VIP 2| $25,000,001‑50,000,000   | 0.00 %         | 0.04 %         | $50,000,001‑75,000,000     | 0.00 %            | 0.024 %           |

| VIP 3| $50,000,001‑75,000,000   | 0.00 %         | 0.035 %        | $75,000,001‑100,000,000    | 0.00 %            | 0.022 %           |

| VIP 4| $75,000,001‑100,000,000  | 0.00 %         | 0.030 %        | $100,000,001‑150,000,000   | 0.00 %            | 0.020 %           |

| VIP 5| $100,000,001‑150,000,000 | 0.00 %         | 0.025 %        | —                          | —                 | —                 |

Note: Increasing your 30‑day cumulative volume moves you to a higher tier, lowering fees. See the table for exact thresholds. When depositing fiat, users can transfer USD via SEPA or SWIFT; US residents must use Binance.US or other regulated US‑based gateways.

Frequently Asked Questions

How does Backpack Exchange protect user funds?

The platform employs a self‑custody wallet architecture, meaning users retain direct control over their assets. This design eliminates the ability of the exchange to unilaterally move funds, enhancing security and transparency.

Which countries or regions are supported?

Regions where service is not provided

• North Korea
• Iran
• Cuba
• Syria
• Crimea (Ukraine)
• Sevastopol (Ukraine)
• Luhansk (Ukraine)
• Donetsk (Ukraine)

Regions under development or pending approval

• Canada
• Japan
• United States (US residents must access the service through Binance.US or other US‑licensed intermediaries)
• United Kingdom
• Most European Union member states
• Singapore
• New Zealand

How can I contact customer support?

If you encounter any issues while using Backpack Exchange, you can email support@backpack.exchange or submit a request through this form. The support team aims to respond within 24 hours.

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