Backpack, a popular NFT wallet app based on the Solana blockchain, has revealed its intentions to enter the regulated cryptocurrency exchange market with the upcoming launch of Backpack Exchange. This news comes after the company recently obtained a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA).
The VARA license specifically covers the exchange operations and does not extend to other features or services provided by Backpack app.
Coral, the company behind Backpack NFT is responsible for developing the Solana-based xNFT standard. Additionally, Coral’s Mad Labs collection on Backpack has garnered widespread attention in the digital art community.
Lads, the time has come.
We launched Anchor, the framework.
We launched Backpack, the wallet.
We launched xNFTs, the protocol,
We launched Mad Lads, the community.And now, we launch X. https://t.co/TQ8ZIu8S6D
— Armani | X (@armaniferrante) October 31, 2023
What to Expect from Backpack
The Backpack Exchange is still in its private beta stage and set to launch exclusively for existing members of Coral’s Backpack and Mad Lads communities in November. This exclusive testing phase will allow the team to gather valuable insights before opening the platform to the general public.
The Backpack Exchange aims to provide a comprehensive trading experience. They plan to offer various features such as spot trading, derivatives, and margin trading. With the intention of expanding its services worldwide, the exchange plans to obtain additional licenses to cater to different jurisdictions.
By choosing the Solana blockchain, Backpack Exchange is looking to offer users an efficient and scalable trading experience. Solana’s high throughput and low transaction fees make it an appealing choice for cryptocurrency traders seeking to avoid excessive costs.
Market Reaction
The announcement of the Backpack Exchange launch has attracted the attention of both experienced traders and newcomers. With the backing of the VARA license and the solid reputation of Coral, investors can rest assured that the exchange will prioritize their interests and ensure a secure trading environment.
As the launch date approaches, the team at Backpack Exchange will continue fine-tuning the platform, addressing any potential issues to deliver a seamless trading experience. Cryptocurrency enthusiasts and traders eagerly await the general public launch of Backpack Exchange, which is slated for the first quarter of 2024.
In a rapidly evolving cryptocurrency landscape, regulated exchanges like Backpack Exchange offer users much-needed trust and credibility. As the Solana ecosystem continues to grow and gain recognition, the app’s integration with the blockchain positions it well for success in the competitive world of cryptocurrency trading.