Backpack BP Token TGE FUD Update: OTC Self-Trading Denied, Sybil Rules Loosened, FDV De-emphasized

Backpack Exchange founder Armani Ferrante addressed $BP token TGE FUD after the Solana launch of a 1B supply. He denied claims of “OTC self-trading” used by Backpack to cash out, saying any OTC discussion was only to connect large buyers with liquidity—not to facilitate insider exits. Ferrante also rejected allegations tying team/insiders to suspicious Polymarket betting, stating there is no affiliation with the team, employees, or advisors. He further argued that low FDV is not a short-term price target, and that 24-hour or one-week FDV is not meaningful given incentives: founders receive no launch-token allocation, benefiting only if $BP succeeds. On community mechanics, he confirmed Mad Lads VIP status remains for pre-TGE holders and will not be changed for new holders. For sybil detection, he admitted the prior rules were too rigid and promised to re-check flagged cases to reduce account-splitting behavior. Backpack also reiterated its push toward a “compliant, crypto-native financial institution,” with allocations dependent on market access. For traders, the immediate watch is whether the BP token narrative stabilizes liquidity and spreads after the “witch hunt” backlash, and whether any restorations/reviews translate into reduced volatility around the BP token ($BP).