- Backpack plans to offer equity to users who stake its upcoming token and join its VIP program.
- The exchange aims to legally separate the token from equity rights to avoid securities classification.
- Backpack is preparing to register the tokens as securities in a “worst-case scenario” during a potential public offering.
- The firm is discussing a $50 million raise at a $1 billion valuation, according to reports from Axios.
On February 9th, 2026, crypto exchange Backpack revealed its upcoming token could grant users equity, a novel strategy sparking industry-wide questions about securities law. Co-founder Can Sun explained the approach hinges on a legal separation between the token and Backpack‘s business interests.
Consequently, the equity conversion right will be tied to a VIP program requiring staking and platform use, not the token itself. “It’s not a property of the token itself, it’s the property of a VIP program that we’re running,” Sun stated. This structure is central as the firm discusses a $50 million fundraise at a $1 billion pre-money valuation, according to reports.
However, the company has a contingency plan to register the tokens as securities if necessary. Sun noted, “The remedy for an unlicensed securities offering is registration.” He cited precedent from a 2020 Coinbase filing for tokenized stock, which SEC documents show was later withdrawn.
Meanwhile, Sun expressed confidence that even under past regulatory scrutiny, the model would have been permissible. The exchange’s supply unlock is expected to align with its public offering timeline, as it evaluates interest from SPACs and bankers.
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