A story about creating a wallet for a new NFT protocol, building the Mad Lads brand and community to market the wallet, and launching an exchange to onboard more users into Web3.
Two months ago, while exploring new DeFi projects on Solana, I discovered that using the Backpack wallet offered extra points rewards. Later, I registered on the Backpack exchange to trade memecoins, experiencing a seamless KYC-to-trading process. It was then I realized that Backpack and Mad Lads—Solana’s top NFT project—were products of the same team.
Intrigued, I delved into their growth journey, uncovering valuable insights. This case study explores their strategy, aiming to equip you with knowledge for the upcoming airdrop season while deepening your understanding of Solana’s ecosystem and product growth tactics.
1. Rising from the Ashes of FTX’s Collapse
In December 2022, Backpack founder Armani Ferrante boarded a flight from Lisbon to Miami. Mid-flight, his team learned about FTX’s collapse, which had wiped out $14.5 million (88% of their operating funds). Despite the setback, they resolved to persevere with the remaining capital:
“As long as Toly and Raj [Solana’s founders] keep coding, we’re not leaving.”
Armani, a Berkeley computer science graduate and former Apple engineer, entered crypto in 2018. He later joined Solana’s ecosystem in 2020, founding Coral, a developer platform that created Anchor, Solana’s leading smart contract framework.
In 2022, Coral secured $20 million in seed funding to develop xNFT Backpack, an interactive crypto wallet. Six weeks later, FTX’s collapse struck. The team rebranded as Backpack, symbolizing a fresh start.
2. The Founders: Deep Roots in Solana’s Ecosystem
Backpack’s founders—Armani Ferrante and Tristan Yver—were deeply embedded in Solana long before launching Mad Lads or their wallet.
Tristan’s background in decentralized finance (DeFi) and Armani’s focus on developer tools shaped their vision: a consumer-friendly gateway to Web3.
3. Introducing xNFTs: Executable NFTs
Backpack initially built its wallet to support xNFTs, a protocol enabling dynamic, interactive NFTs. Think of xNFTs as decentralized apps (dApps) embedded directly in wallets—tradeable assets with programmable functionality.
Key features:
- Token-gated access: Mad Lads holders use xNFTs to enter exclusive chatrooms or stake NFTs for rewards.
- Soul Bound Inventory: Airdrops (e.g., Pyth, Wormhole) are tied to NFTs via vesting contracts, fostering long-term community-project ties.
4. Backpack Wallet: A Product-First Approach
Why a wallet? Armani and Tristan sought to onboard mainstream users into Web3. Competing in a crowded space required innovation:
- xNFT Integration: Turns the wallet into a programmable platform.
- Asset Locking: Protects NFTs from phishing attacks while staking them for rewards.
- Custom RPCs & Priority Fees: Advanced yet user-friendly Web3 features.
The Side Panel feature (launched recently) streamlines interactions with DEXs and NFT markets on desktop.
5. Mad Lads: The Community That Fueled Growth
Launched on April 20, 2023, Mad Lads (10K PFP NFTs at 6.9 SOL each) sold out despite bot attacks, thanks to their “Honey Pot” anti-bot system. With 8,000+ unique holders, it became Solana’s blue-chip NFT project.
Community-building strategies:
- Holder-Centric Events: Armani hosted Twitch livestreams (even with small audiences) to foster loyalty.
- Content Creation: The Roster—a team of extreme sports creators—produced viral content (millions of views) to spread “Fock it, we ball” culture beyond crypto.
6. Backpack Exchange: Bridging Web2 and Web3
Originally planning to partner with exchanges, Backpack pivoted to building its own after FTX’s fall. The Backpack Exchange (launched October 2023) offers:
- Seamless KYC-to-trading experiences.
- Sub-accounts for asset privacy.
- Regulatory compliance: Licenses secured in Dubai (VARA), Australia, and Europe; pending in Japan and the U.S.
7. Compliance: The Industry’s Biggest Hurdle
Armani emphasizes: “Clear regulations are critical.” Backpack aims for 95% GDP coverage by 2024, balancing:
- Regulated exchange (ZK-proof reserves, MPC custody).
- Self-custody wallet (private, non-custodial).
8. Conclusion: The “Mad” Builders of Web3
From surviving FTX to fostering Solana’s NFT resurgence, Backpack’s team embodies the Mad Lads ethos. Their trifecta—NFTs, wallet, exchange—caters to beginners and degens alike, driven by a mission to democratize Web3 access.
Explore Backpack:
FAQs
Q: How does xNFT differ from traditional NFTs?
A: xNFTs are executable—like mini-apps inside your wallet—enabling staking, gaming, or token-gated access.
Q: Is Backpack Exchange safe?
A: Yes. It uses zero-knowledge proofs and complies with Dubai’s VARA, Australia’s AUSTRAC, and EU standards.
Q: Why stake Mad Lads NFTs?
A: Staking unlocks airdrops (e.g., Wormhole’s 16,000 W) and community perks.
Featured in:
*Backpack’s $17M Series A (Feb 2024):* Led by Placeholder at a $120M valuation, with Solana founders and key ecosystem players participating.