Solana-Based NFT Wallet Backpack Ventures into Regulated Exchange Space
Backpack, the NFT wallet app operating on the Solana blockchain, has unveiled its venture into the world of regulated cryptocurrency exchanges with the launch of “Backpack Exchange.” This ambitious move comes after securing a Virtual Asset Service Provider license for Exchange Services from the Dubai Virtual Assets Regulatory Authority (VARA).
VARA a pivotal authority in Dubai’s virtual asset space, mentioned that the licensing process underwent a thorough evaluation before it granted approval. A VARA spokesperson highlighted the importance of investor protection and risk assurance in Backpack Exchange’s approach, recognizing the platform’s commitment to these core principles.
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Coral, the entity behind the Backpack app, is well-known for its contributions to the Solana ecosystem, including pioneering the xNFT (executable NFT) standard for NFT-based applications and experiences. Additionally, Coral has gained prominence with the Mad Labs profile picture (PFP) collection on the Solana blockchain.
Armani Ferrante, the Founder and CEO of Backpack, underlined the significance of transparency and compliance, emphasizing the importance of verifying trust. This perspective follows Coral’s involvement with the FTX crypto exchange, which encountered difficulties and ceased operations in November 2022. The closure of FTX left $14.5 million in investment funds inaccessible to Coral, out of a total of $20 million raised, including $10 million from FTX Ventures.
Backpack Exchange is gearing up for a private beta launch in November, initially catering to members of the existing Backpack and Mad Lads communities. The platform has further plans to open its services to the general public in the first quarter of 2024. Backpack Exchange’s offerings will commence with spot trading of cryptocurrencies, with expansion plans on the horizon, including derivatives, margin trading, and more as Backpack secures additional licenses on a global scale.
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The move into the regulated exchange arena marks a significant step in the evolution of the Solana-based NFT wallet app, opening doors to broader financial services and investment opportunities for its users.
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