Crypto exchange Backpack is rolling out a novel program allowing users to earn equity by staking its upcoming token. Co-founder Can Sun detailed the strategy, which separates the token's utility from direct equity claims to navigate U.S. regulatory scrutiny.
Users must become VIPs by trading on the exchange and staking the token for an extended period. Sun emphasized that the equity rights are tied to the VIP program, not the token itself. This approach comes as Backpack is reportedly seeking $50 million in funding at a $1 billion valuation.
Backpack also has a contingency plan: registering the tokens as securities during an anticipated initial public offering, a move Sun believes would resolve any potential regulatory issues. Sun, formerly of FTX, referenced Coinbase's past attempt to tokenize shares as precedent for such complex financial instruments.