Breaking: Backpack Acquires FTX EU in $32.7M DealIn a major development for the European crypto market, Backpack Exchange has acquired the bankrupt European unit of FTX for $32.7 million. This strategic move positions Backpack as a key player in regulated crypto derivatives, aiming to restore trust and innovation in the sector following the FTX collapse.
The Acquisition: A New Chapter for FTX EU
FTX EU, previously part of Sam Bankman-Fried’s defunct crypto empire, operated under a MiFID II license from the Cyprus Securities and Exchange Commission (CySEC). The acquisition by Backpack marks a significant step in reviving the platform’s operations. According to Armani Ferrante, CEO of Backpack Exchange, the company plans to offer a full suite of crypto derivatives throughout Europe, starting with regulated perpetual futures—a product currently unavailable in the EU.
Backpack’s entry comes at a time when major players like Bitstamp and Coinbase have secured MiFID II licenses, with other firms like D2X preparing to deliver USD-denominated futures and options. Backpack’s MiCA notification has already been submitted, and Ferrante expects operations to commence in Q1 2025.
Rebuilding Trust and Innovation
The acquisition not only secures Backpack’s foothold in the European market but also provides an opportunity to repair the damage caused by FTX’s collapse. Ferrante emphasized the company’s commitment to returning FTX EU customers’ funds as a priority. Once this process is complete, Backpack aims to launch its regulated perpetual futures product, further solidifying its market position.
Backpack’s founders, known for their contributions to the Solana ecosystem and success in the wallet and NFT business, raised $17 million in funding last year. This financial backing underscores the company’s capability to execute its ambitious plans.
Technical Outlook: TSX:FTT Price Analysis
Despite the acquisition news, TSX:FTT , the native token of the FTX platform, has shown a weaker trend channel, down 2.14% at the time of writing. The Relative Strength Index (RSI) stands at 46, indicating a neutral momentum but leaning towards bearish sentiment due to selling pressure.
Key Technical Levels:
- Support: The 65% Fibonacci retracement level serves as immediate support. A breakdown below this level could trigger a selling spree, potentially driving TSX:FTT to its one-month low.
- Resistance: If TSX:FTT manages to rebound, traders should watch for a move above the current trend channel to confirm a bullish reversal.
While the acquisition provides a positive fundamental backdrop, traders remain cautious, awaiting clarity on how the settlement of affected FTX customers will unfold. The resolution of these issues could act as a catalyst for TSX:FTT ’s recovery.
The Road Ahead
Backpack’s acquisition of FTX EU represents a turning point for regulated crypto derivatives in Europe. With plans to launch a full suite of products and restore customer trust, the company is poised to make significant strides in the market. For TSX:FTT , the path forward depends on both the broader market sentiment and the successful implementation of Backpack’s ambitious plans.
Investors and traders should monitor both technical indicators and fundamental developments closely as Backpack reshapes the narrative around FTX EU and its role in the European crypto landscape.
