The FTX’s downfall is still casting a shadow on the crypto space, yet some of its former execs are considering a new venture, aiming to restore trust.
Whether Sun, the former general counsel of FTX who testified against Sam Bankman-Fried, and Ferrante, an ex-developer at Alameda Research, can create Backpack, regulated crypto exchange that operates in 11 US states remains a real question.
Backpack aims to be public and secure, which is as opposite as the unfamiliar practices that caused FTX failure. At the core of this trade platform is a private blockchain dedicated especially for cryptocurrency trading.
This makes the feature of users self-custody, allowing them to store their own personal funds eligible to Backpack. While this, the independent nodes on the network make their own decision on every transaction adding another security layer.
Sun and Ferrante are clear about their intentions: “Our standards are rigorous,” so states Ferrante.” This commitment is extended to transparency, with access to verify your assets at any time.
Sun told the Wall Street Journal, “To create a true alternative to the other players in a post-FTX world, you need trust and transparency.”
Backpack starts with 11 US states, however, the exchange plans to operate in other countries internationally. While the journey ahead may be long and arduous, Ferrante remains optimistic in his talk; he says that “It’ll be slow, steady, and hard, but it’ll be worth it.”
After the FTX collapse, only time will tell whether Backpack can build the confidence of the audience, but its security and transparency orientation is a good point in the right direction.
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