Backpack Exchange Targets $1B Valuation Amid Extreme Market Fear

VADODARA, February 9, 2026 — Cryptocurrency exchange Backpack is seeking new investment at a targeted $1 billion valuation, according to an exclusive Axios report. This Latest crypto news reveals the former FTX-founded platform aims to capitalize on regulatory compliance narratives during a period of extreme market fear. The exchange plans to allocate 25% of its token supply at the upcoming Token Generation Event (TGE), distributing 24% to point holders and 1% to NFT holders.

Investigation: Backpack's Funding Strategy and Tokenomics

Axios exclusively reported Backpack's funding initiative. The exchange targets a $1 billion valuation for this capital raise. Founded by former FTX personnel, Backpack emphasizes regulatory compliance and transparency as growth drivers. Consequently, the raised funds will fuel global market expansion and infrastructure upgrades. Backpack recently disclosed its TGE plan and tokenomics. The exchange will unlock 25% of the total token supply at TGE. This allocation distributes 24% to point holders and 1% to NFT holders, creating immediate sell pressure if not managed.

Market Context & Historical Precedent

Historically, exchanges founded after major collapses like FTX face intense scrutiny. Backpack's compliance focus mirrors Binance's post-2023 regulatory pivot. In contrast, the current Extreme Fear sentiment (score: 14/100) creates a liquidity grab environment. Underlying this trend, stablecoin minting and miner movements indicate capital repositioning. For instance, recent USDC minting activity suggests institutions prepare for volatility. Similarly, Bitcoin miner outflows to exchanges signal potential selling pressure. These events collectively shape a high-stakes backdrop for Backpack's valuation target.

Technical Architecture & Price Action

Market structure suggests Bitcoin's current price of $69,971 tests critical support. The Fibonacci 0.618 retracement level at $68,500 from the 2025 rally acts as a major order block. A break below invalidates the bullish structure. , Ethereum's Pectra upgrade (EIP-7702) could influence exchange token valuations by enhancing smart account functionality. RSI readings near oversold levels indicate potential for a short-term bounce. However, volume profile analysis shows thinning liquidity below $68,000, increasing downside risk if support fails.

By The Numbers

Why It Matters

Backpack's valuation target matters for institutional liquidity cycles. A successful raise validates compliance-focused models post-FTX. According to on-chain data, exchange token valuations often lead altcoin liquidity rotations. The TGE's 25% unlock creates a fair value gap (FVG) if demand lags supply. This event could pressure similar exchange tokens like BNB or OKB. , Backpack's NFT holder allocation (1%) tests token utility beyond speculation. Market analysts note that such distributions must align with real yield generation to sustain valuations.

Expert Commentary

"Backpack's $1 billion target reflects a strategic bet on regulatory arbitrage. The former FTX team leverages compliance narratives to attract institutional capital during extreme fear. However, the 25% TGE unlock poses immediate dilution risks. Market structure suggests successful exchanges must demonstrate sustainable fee revenue, not just token launches." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure. First, a bullish scenario requires Bitcoin holding $68,500 support. This would validate Backpack's fundraising amid recovering sentiment. Second, a bearish scenario involves Bitcoin breaking below $68,000, triggering a liquidity cascade. This could delay or downsize Backpack's valuation target.

• Bullish Invalidation Level: $72,000 resistance must break to confirm trend reversal, aligning with the 50-day moving average.
• Bearish Invalidation Level: $68,500 Fibonacci support must hold to maintain current market structure.

The 12-month institutional outlook hinges on macroeconomic conditions. Federal Reserve policy, as detailed on FederalReserve.gov, will influence capital availability for ventures like Backpack. Historically, exchange valuations correlate with Bitcoin's dominance cycles. A breakout above $72,000 could accelerate Backpack's expansion plans.