Backpack Exchange Unveils BP Token with Equity Conversion

Backpack launches its BP token with a 250 million airdrop. The unique model allows long-term holders to convert tokens into company equity.

Approximately 25% of the total supply of 1 billion tokens—roughly 250 million BP—will be distributed at launch, primarily through an airdrop campaign for existing users. The majority is earmarked for participants in the platform’s points program, as well as holders of the Mad Lads NFT collection.

The company emphasized that no tokens were allocated to founders, the team, or investors at launch—a move that stands in sharp contrast to the typical distribution models seen across crypto exchanges.

Growth-Linked Structure

The remaining 75% of the supply will be unlocked gradually, tied to the company’s development. About 37.5% is linked to operational goals such as market expansion and new products, while the other 37.5% will remain locked in a corporate treasury until a potential initial public offering (IPO).

This model aims to synchronize the token’s value with real business growth rather than relying solely on market speculation.

Token as an Equity Tool

Backpack is also introducing a more unconventional mechanism: the ability for long-term holders to convert BP tokens into equity in the company.

This links the token to the firm’s broader capital plans, positioning it not just as a trading tool or incentive, but as a potential bridge to an equity structure.

Context and Strategy

Founded by former employees of FTX and Alameda Research, the company initially faced intense scrutiny following the FTX collapse in 2022. Backpack subsequently acquired the European division of the bankrupt exchange and relaunched it as Backpack EU as part of its strategy to expand into regulated markets.

The structure of the BP token highlights a growing trend in the crypto sector toward tighter links between tokens and real-world value, while simultaneously testing the boundaries between traditional financial instruments and digital assets.