Backpack has rapidly emerged as a trusted name in the cryptocurrency exchange space since its 2023 launch. Backed by regulatory compliance, strong funding, and a user-first approach, it offers centralized trading services with a focus on security, transparency, and innovation. One of its latest breakthroughs is the introduction of fiat withdrawal functionality, enabling users to seamlessly convert USDC into USD and wire funds directly to their bank accounts—such as LINE Bank—with zero platform fees and fast processing times.
This guide dives deep into Backpack’s background, core features, step-by-step withdrawal instructions, and how to maximize rewards through its active user incentive programs—all while maintaining full compliance and security.
Key Highlights of Backpack Exchange
Backpack stands out in the crowded crypto exchange market due to three major strengths:
- Regulatory Compliance: Licensed under Dubai’s Virtual Asset Service Provider (VASP) framework and legally operates in 12 U.S. states.
- Strong Funding: Raised **$17 million** in February 2024, achieving a $120 million valuation with backing from industry leaders like Placeholder and Delphi Digital.
- Generous Airdrops: Distributed over $50 million in rewards across four airdrop events by April 2024, reinforcing user engagement and loyalty.
The exchange supports 47 spot trading pairs and 34 perpetual contract assets, expanding beyond its initial Solana-centric roots to include major blockchains and meme coins like BTC, ETH, USDT, JUP, TRUMP, WIF, and ARB. Contract trading options include BTC-PERP, ETH-PERP, and more with flexible leverage.
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The Story Behind Backpack: From FTX Collapse to Resilience
Founder Armani Ferrante’s Vision
Armani Ferrante, Backpack’s founder, graduated from UC Berkeley and began his career at Apple, developing popular iOS applications. Inspired by Ethereum’s potential, he left to dive into Web3 development.
In early 2018, he briefly joined Alameda Research—linked to FTX—where he connected with key executives but soon departed to focus on blockchain research. By 2020, when FTX began exploring Solana, Armani shifted focus and founded Coral, a developer platform tailored for Web3 engineers.
Overcoming the FTX Collapse
Coral secured $20 million in funding in 2022 from top-tier investors including FTX Ventures, Jump Crypto, and Multicoin Capital. Just six weeks later, FTX collapsed—wiping out nearly 90% of Coral’s operational funds.
Despite this setback, the team remained committed to building within the Solana ecosystem.
Fundraising Success via Mad Lads NFT
In April 2023, the team launched the Mad Lads NFT collection—10,000 unique digital collectibles sold at 6.9 SOL (~$150) each. Crucially, purchases required payment via Backpack Wallet, driving mass adoption.
The sale raised millions in capital and catapulted Backpack into the spotlight, laying the foundation for the official exchange launch.
Launching the Regulated Exchange
In October 2023, Backpack announced its Dubai VASP license and officially launched its exchange. The leadership team includes former FTX legal counsel Can Sun and Claire Zhang, emphasizing lessons learned from past failures—particularly around transparency and user protection.
Backpack quickly gained traction, reaching a record $10 billion in 24-hour spot trading volume despite initially offering only spot markets.
By February 2024, it secured an additional $17 million in funding, solidifying its position as a rising star in the crypto world.
Backpack’s New Fiat Withdrawal Feature: Fast & Fee-Free USD Transfers
Backpack has now introduced a game-changing fiat withdrawal function, allowing users to convert USDC into USD and wire funds directly to their bank accounts—ideal for users in regions like Taiwan using LINE Bank.
This feature is fully compliant, fast, and cost-effective—setting a new standard for crypto-to-fiat exits.
Key Benefits of Backpack’s Fiat Withdrawal
- ✅ Supported Banks: LINE Bank Taiwan Limited (requires USD foreign currency account)
- ✅ Withdrawal Asset: USDC converted to USD via wire transfer
- ✅ Platform Fees: Zero fees charged by Backpack
- ✅ Speed: Typically processed within 2–3 hours, often same-day settlement
- ✅ Compliance: Select remittance purpose code "268 – Sale of Foreign Virtual Assets" during transfer
Step-by-Step Withdrawal Guide
- Log in to your Backpack account → Click “Withdraw” → Select “Fiat”
- Enter the amount in USDC and choose your recipient (e.g., LINE Bank)
- Add your bank details: SWIFT code, account number, bank name
- Review all information → Click “Continue” to submit
- Wait for confirmation—LINE Bank users typically receive funds within 2–3 hours
This streamlined process makes converting crypto profits into usable fiat easier than ever—without hidden costs or delays.
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Frequently Asked Questions (FAQ)
Q: Is Backpack a legitimate exchange?
A: Yes. Backpack is a regulated centralized exchange (CEX) with a Dubai VASP license and operations in multiple jurisdictions. It is not a scam, though phishing sites mimicking its interface exist.
Q: How do I deposit funds into Backpack?
A: Currently supports USDC and USDT deposits via the Solana (SOL) blockchain only.
Q: Does Backpack have a mobile app?
A: Yes. Download the official app directly from the Backpack website for iOS and Android.
Q: What security measures should I take?
A: Always use the official website and enable two-factor authentication (2FA) immediately after registration. This adds a critical layer of protection against unauthorized withdrawals.
Q: How are Backpack Points calculated?
A: Points are awarded weekly based on activity (spot, futures, lending), with dynamic scoring. Rankings determine tier levels from Bronze to Challenger.
Q: Are there any withdrawal limits?
A: While not publicly specified, higher-tier users may enjoy increased limits. Always ensure your KYC is complete for full access.
How to Sign Up on Backpack Exchange
- Visit the official Backpack website → Enter your email and password → Complete email verification
Proceed to KYC verification (similar to bank account setup):
- Select individual account type
- Provide personal details (name, residence)
- Upload government-issued ID or passport
- Wait for approval—typically takes 12 to 24 hours
Once verified, you can begin trading, earning points, and utilizing the new fiat withdrawal feature.
Backpack Trading & Withdrawal Fees
Trading Fees (Maker/Taker Model)
Default rates are:
- Maker fee: 0.085%
- Taker fee: 0.095%
Fees decrease with higher 30-day trading volume:
- Tier 1 (>$2M): 0.080%/0.090%
- Tier 3 (>$5M): 0.075%/0.085%
- VIP 4 (>$800M): 0.000%/0.040% (maker fee waived)
High-volume traders benefit significantly from tier upgrades.
Crypto Withdrawal Fees
Standard withdrawal fees apply:
- USDC / USDT: $1 per transaction
- BTC: 0.0002 BTC
- ETH: 0.0014 ETH
- SOL: 0.01 SOL
No fees are charged for deposits.
For updated rates, refer to Backpack’s official fee page.
Core Keywords
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With robust infrastructure, regulatory clarity, and innovative features like instant fiat withdrawals, Backpack is positioning itself as a next-generation CEX that bridges the gap between decentralized innovation and traditional finance accessibility.
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