The Backpack difference, market impact, and the community that drives it all

First of all thanks to Sir Armani (and the team) for motivating me to write this blog post and to the SuperteamDao of Solana.

Let’s Focking Go!

In February 2024, Just last month! Solana (NFTs) recorded an all-time sales volume of over $5 billion, Mad lads was one of the main drivers of the volume with over $140 million.

The Inception and Evolution of Mad Lads and the Backpack Team

The journey of Mad Lads starts with the creation of Backpack, a Solana-focused crypto wallet envisioned by Coral. Coral is a development company led by Armani Ferrante, also known in the Solana community for creating the popular** Anchor framework**.

Before we dive into the hot sauce let’s wind back the clock a bit⏱.

Backpack: Forged in the Fire of Crypto Chaos

Backpack(Decentralized wallet) brought Mad Lads(NFTs) and Backpack Exchange(CEX) into the world, and it’s become an indispensable tool. Yet, Backpack’s birth was anything but ordinary. It emerged in December 2021, amidst the crumbling ruins of FTX — a baptism by fire in the turbulent world of crypto. Not meant to remain a niche curiosity, Backpack has evolved into a formidable force within the Solana ecosystem, offering the sophisticated tools for seasoned traders demand.

This symbiosis benefits both parties. Backpack ignited Mad Lads’ early growth, generating buzz and a dedicated user base. In return, Backpack’s legitimacy and expansive reach solidify the value of Mad Lads as tradable assets.

Resilience as a Hallmark

Of course, this isn’t some picture-perfect fairy tale. Crypto’s inherent volatility means bear markets can decimate projects and exchanges alike. Mad Lads(NFTs), Backpack Exchange, and Backpack (the wallet) have braved these storms, their survival a testament to community loyalty and the platforms’ underlying strengths.

Explosive growth brings its own challenges. Backpack’s rapid expansion undoubtedly led to scaling issues — technical hurdles that demanded constant upgrades to ensure smooth operation amidst an influx of users.

The **NFT**s, Decentralized Wallet, and Centralized Exchange (CEX) arenas are fiercely competitive. **Mad Lads **and Backpack have had to forge distinct identities to remain at the forefront of innovation.

Why Solana?

Sir Armani started an internship at Apple as a Software engineer and later became a developer for Ethereum in 2017, where they started working on L2(or Layer 2) and are interested in Scaling Solutions. Between Apple and Ethereum, he worked at Alameda Research for 3 months on trading systems then at Oasis(a research group at Berkeley), and Finally found a home in Solana.

Meet the cool team, building cool stuff:

Armani Ferrante and Tristan Yver’s interest in scaling solutions plays a significant role in their eventual transition to Solana.

Here’s a breakdown:

1. Ethereum’s Limitations: In 2017, Ethereum was already facing scalability challenges. High gas fees and slow transaction speeds were hindering its ability to function as a platform for large-scale applications.

2. Scaling above all: Sir Armani’s work on L2 solutions showed he was aware of the need to find ways of scaling Ethereum. However, Layer 2 solutions on Ethereum often inherit limitations(e.g. Sharding, rollup) and introduce complexities of their own.

3. Solana’s Promise: Solana emerged as a blockchain specifically designed for high throughput and low fees. Its unique architecture, censorship-resistant, immutable, and technological innovations(which we’ll dive into next) offered a potential breakthrough in blockchain scalability.

4. A New Frontier: Solana represented an exciting opportunity to build scalable solutions from the ground up on a fundamentally more efficient blockchain.

“People seem to forget how extraordinary the initial condition for Solana are, They’re like truly incredible like very hard to recreate might be impossible to recreate” -Armani Ferrante

Solana’s Speed Tech

Here are the core technologies contributing to Solana’s high throughput:

Proof of History (PoH): Unlike traditional blockchains that rely solely on timestamps, PoH creates a verifiable historical record of events on the network. This eliminates the need for nodes to constantly communicate timestamps, radically speeding up consensus and block production.

Turbine: Think of Turbine as a data propagation mechanism. It breaks down transaction data into small packets, making it easier and faster for nodes to share them across the network.

Gulfstream: A mempool-less transaction forwarding protocol that optimizes network load and allows validators to begin executing transactions ahead of time, further boosting speed and efficiency.

SeaLevel: Solana’s ace in the hole! SeaLevel is a parallel transaction processing engine. It allows the network to process thousands of non-overlapping transactions simultaneously, unlike other blockchains that process them sequentially.

Pipelining: A hardware-optimization technique used by Solana validators for quickly distributing and validating transaction information across different components within a node.

Scaling Solution Analysis between Solana and Ethereum

To sum up, Solana is Fast as famously coined by the Community “SOL” as “Speed Of Light”.

Analysis of Mad Lads’ Secondary Market Sales

As a seasoned trader with experience in Financial Market Valuation, I rely on both narratives (because stories shape sentiment) and numbers (numbers matter). The Mad Lads market is showing signs of renewed vitality, with key metrics pointing towards a significant upswing in the past month.

Let’s analyze the data and uncover the implications.

👉Sales Volume: The latest data from CryptoSlam shows that the total sales of Mad Lads have exceeded US$140 million.

• Mad Lads is currently distributed between 5,203 holders according to CryptoSlam data.

• Average Hold Time: This metric represents the average length of time that Mad Lad NFTs have been held by their current owners. The image lists this as 10.34 days. This indicates that Mad Lad NFTs are being actively traded or that there is a mix of long-term holders and short-term traders.

👉Floor Price: Mad Lads price floor today is $26,640, with a 24-hour sales volume of 4,127 SOL. The overall NFT market is bullish, and the floor price of Mad Lad NFTs is more likely to rise.

Analyzing Average Sale Prices through various Marketplaces such as Tensor,** Magic Eden**, Solanart, and Opensea(on Ethereum). At the time of writing, I see A slight increase of 5%, which suggests stability amidst the overall upward trend and potential interest in higher-rarity pieces.

At the time of writing this Blog post, This was old for 244.90 SOL($ 46,883.66). You can view the transactions here and Marketplace here.

The current market signals paint a bullish picture for Mad Lads in the short term. The combination of increased demand, rising floor prices, and positive community sentiment set a promising stage. However, continued innovation, utility delivery, and maintaining community enthusiasm remain crucial for long-term success.

Mad Lads and Backpack’s Milestones Contributing to its Reputation

Mad Lads and Backpack have built a name for themselves through a whirlwind of innovation and community focus.

Mad Lads NFTs

• Successful Launch: The initial sellout of the Mad Lads collection in April 2023 demonstrated high initial demand with over 50% of total NFT sales on the Solana blockchain(Weekly trading)and market interest.

• Strong Floor Price Growth: The continual rise of the floor price*(the lowest available price for any piece in the collection*) suggests consistent demand and collector belief in the project’s value which according to CryptoSlam data at 6.9 SOL (US$154) per token. Its floor price rose to 85 SOL at 10:30 p.m. in Hong Kong(this was during the launch in April 2023).

• xNFT Functionality: As the first xNFT collection on Solana, Mad Lads pioneered the concept of executable NFTs((which later in this blog we will explore more about xNFT, so bear with me), enhancing their reputation as innovators.

• Community-Driven Initiatives: Events, contests, and collaborations fostered a sense of strong community and contributed to a positive reputation(e.g. these events were orchestrated by the superteam, w/o this even I would never know them deeply).

• Innovative Staking Model: The integration of a unique staking mechanism for Mad Lads NFTs not only rewards holders but also reinforces their reputation for pushing boundaries within the NFT space.

Backpack Wallet: A Web3 crypto wallet designed for Solana and Ethereum. Easilu store, send, and receive SOL tokens, other Solana-based cryptocurrencies (SPL tokens), and Ethereum-based assets.

With Top innovative technology includes:

• Focus on Security: Implementing features like the “lock” function, which allows users to prevent NFT transfers out of their wallet, positioned Backpack as a security-first platform.

• Ease of Use: Just recently, they introduced a “Side panel” where you can toggle the wallet directly from the exchange(which is also available on Zetamarkets, Maginfi, and many more so stay tuned!); Backpack’s user-friendly interface and emphasis on accessibility attracted a wide range of users, building trust and a positive perception of the wallet.

• xNFT Compatibility: Designed from the ground up to support Mad Lads and other xNFTs, Backpack cemented its reputation as a hub of innovation within the Solana ecosystem.

  Backpack Exchange: A Centralized Exchange w/ on-chain integrated Tech. Its Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority(VARA) **ensures a secure and regulated trading environment.

This alone requires a separate article, but I will provide a summary here:

The team has worked on the exchange, incorporating innovative Zero-Knowledge Proofs(Zk), Multi-Party Computation (MPC) for custody, and low latency order execution.

Moreover, to provide a seamless user experience(UX), they have simultaneously secured licenses across multiple global jurisdictions and established premium fiat on-ramps and off-ramps.

Some key milestones include:

• Impressive Trading Volume: Backpack Exchange’s rapid achievement of high trading volume demonstrates its strong appeal within the Solana CEX landscape.

• User-Focused Development: By prioritizing user-requested features like leaderboards and rewards, Backpack Exchange builds loyalty and a reputation for responsiveness within the CEX market.

• Mad Lads Ecosystem Synergy: Backpack Exchange’s deep integration with the Mad Lads project creates a sense of a well-planned and interconnected ecosystem, offering a unique advantage in the CEX space.

The development team at Coral, with former FTX ties, has a somewhat mixed reputation. You can admire their technical prowess, while others are wary due to the FTX association. However, people learn from their mistakes(it’s part of the growth) and have already moved on.

Factors Driving Mad Lads and Backpack’s community growth and engagement

Forget everything you think you know about NFTs. Mad Lads aren’t just pretty pictures — they’re pushing the boundaries of what NFTs can do. With their focus on utility and the power of their xNFT technology, Mad Lads are poised to shake up the game.

Factors Specific to Mad Lads

• Strong Visual Identity: Mad Lads’ distinct, meme-inspired art style makes them immediately recognizable and creates a sense of fun, attracting a community that appreciates the humor and irreverence.

• Scarcity: Limited supply of Mad Lads NFTs increases their perceived value and desirability. This fuels a strong secondary market and collector mentality.

• Utility Beyond Aesthetics: Mad Lads offer more than just visual appeal. Holding them within the Backpack ecosystem can unlock benefits like staking rewards, access to exclusive features, or potential future airdrops.

• The Backpack Team and Ecosystem: Leveraging the reputation and user base of their existing wallet and exchange.

• The Power of Creators: Mad Lads creators embody the brand’s spirit, frequently embracing real-world exploits like surfing, skydiving, and biking. Their content adds a layer of authenticity and excitement, demonstrating that the Mad Lads philosophy extends beyond the digital realm. This resonates with the audience and attracts those who identify with this adventurous mindset.

General Factors Contributing to the Growth

1. Strong Community: Mad Lads have cultivated a highly active and engaged community passionate about the project and its artwork.

2. Wallet-Specific Launch: Initially launching exclusively on the Backpack wallet added scarcity and a sense of exclusivity to the collection.

3. Utility Focus: Coral’s intention is to build more utility into Mad Lads, moving beyond simple PFPs into xNFTs or executable NFTs with potential use cases in gaming and other applications.

4. Solana Ecosystem Growth: The Solana blockchain’s popularity and growth directly impacted NFT projects like Mad Lads. Solana offers lower transaction fees and faster speeds than some other blockchains.

5. Innovators in NFT Security: Backpack’s focus on NFT security, specifically the “lock” feature, resonates with collectors looking for added protection for their valuable assets.

6. Market Sentiment: The overall positive momentum in the Solana NFT market plays a role, with successful launches from other projects fueling a positive investor outlook.

Mad Lads & xNFTs (Executable Non-Fungible Token)

Traditional NFTs primarily represent ownership of digital collectibles like art, music, and gaming assets. xNFTs take this concept further by embedding interactive elements directly within the NFT. This unique feature allows you to play games, listen to music, access DeFi protocols, and more — all through the xNFT itself. It creates a self-contained, programmable experience within the Web3 ecosystem.

Mad Lads NFTs feature 10,000 unique, edgy illustrations of human and humanoid characters on the Solana blockchain. Initially launched as a standard profile picture (PFP) NFTs, Coral’s vision is to transform Mad Lads into xNFTs.

This involves embedding them with code to unlock features, functionality, and utility beyond their use as static images. Mad Lads already utilizes xNFT technology, meaning they contain executable code that enables unique functionalities and interactions within Coral’s Backpack wallet.

Early Examples of xNFT Features:

1. Clickable access to stories: Mad Lad NFTs have stories associated with them which become accessible directly from the Backpack wallet.

2. Potential for evolution: Mad Lads artwork may change or evolve over time based on different factors, like community interactions or events.

3. Gaming potential: The possibility for Mad Lad xNFTs to be playable characters in future games built on Solana.

Features of xNFTs:

1. Programmability: xNFTs contain executable code, meaning they can be programmed to perform specific functions or interact with other applications.

2. Interactivity: This code makes xNFTs interactive, unlike regular NFTs, which are primarily static. Users can engage directly with their xNFTs.

3. Self-Updating Capability: xNFTs can potentially pull information from external sources and update themselves accordingly. For instance, an xNFT linked to a sports team could update its appearance based on game results.

Advantages of xNFTs

1. Enhanced Utility: xNFTs move beyond simple artwork or collectibles. They can offer real-world use cases within games, music, DeFi protocols, and more.

2. Deeper Engagement: Interactivity enables a more immersive and engaging experience for NFT holders.

3. New Creative Avenues: xNFTs open up vast possibilities for artists, developers, and collectors to interact with NFTs on a whole new level. They can be digital tickets, playable characters, or even entire mini-games.

4. Streamlined Experience: xNFTs can execute their actions within a compatible wallet like Backpack, eliminating the need to visit external sites or platforms.

xNFTs are bursting with potential, taking the world of NFTs far beyond static images. While still in its early stages, this exciting technology is rapidly evolving. Imagine the possibilities that lie ahead! Mad Lads offers a tantalizing glimpse into the future — a future where NFTs can interact, evolve, and bring a whole new dimension to digital ownership.d Lads might just be offering us a taste of what’s possible.

FUTURE OUTLOOK

The future outlook for Coral, Armani Ferrante, Backpack Wallet, Mad Lads NFTs, and the potential Backpack Exchange appears promising, but the crypto space is always volatile.

Here’s a breakdown of the positive signals and potential challenges:

📈Positive Outlook

1. Technical Pedigree: Armani Ferrante’s proven track record at Apple, Ethereum, Alameda Research, and Solana lends credibility to his projects. Coral’s developer tools, like Anchor, are already popular.

2. xNFT Innovation: The xNFT standard used by Mad Lads aims to make NFTs more interactive and functional, unlocking new possibilities within the Solana ecosystem.

3. Ecosystem Growth: If successful, Backpack Wallet could serve as an onramp for many new users into Solana’s dApps, NFTs, and potential exchange, fueling the network’s growth.

4. NFT Hype: Mad Lads’ initial success demonstrates a demand for Solana NFTs. This could create a halo effect, attracting attention to their projects.

5. Focus on Ease of Use: Backpack emphasizes a user-friendly experience, which could ease mainstream adoption of crypto on Solana.

Mad Lads & xNFTs:

1. Diverse xNFT Experiments: Mad Lads could continue to pioneer the xNFT space. Think music NFTs that dynamically evolve based on listening habits, or gaming xNFTs that become more powerful with use.

2. xNFT Developer Ecosystem: Backpack could establish tools and grants to encourage third-party developers to build xNFTs on their platform, creating a rich and diverse xNFT marketplace.

3. Bridging to Real-World: Potential for xNFTs to interact with real-world events or assets. Imagine an xNFT tied to a concert ticket that unlocks exclusive content or a digital art xNFT reflecting ownership of a physical piece.

📈Challenges and Considerations:

1. Competition: The crypto wallet and NFT marketplace spaces are heavily saturated. Standing out requires continuous innovation and differentiation.

2. Regulation: Increased regulatory scrutiny in the crypto space could create hurdles for projects, especially those aiming to offer an exchange feature with advanced trading options.

3. Solana’s Stability: Solana’s past network outages have raised reliability concerns. Coral and its projects tied to Solana are dependent on the blockchain’s health.

4. Market Volatility: Crypto markets are notoriously volatile. General downturns could hinder adoption and investor enthusiasm.

5. Execution: Strong ideas are only a start. Flawless execution will be critical to turning the vision into reality. As the saying goes “there is no solution only trade-offs”.

Overall

Mad Lads, Backpack led by Armani Ferrante, seems well-positioned within the fast-growing Solana ecosystem. If they tackle the challenges and maintain their focus on innovation and user experience, Backpack Wallet, Mad Lads NFTs, and a potential Backpack Exchange could contribute significantly to the Solana network’s success.

Caveat!* “The article emphasizes that it does not contain sponsored content or financial advice. Instead, it offers educational insights into cryptocurrency within the Solana ecosystem. Readers are urged to research independently and consult financial professionals before investing. The article underscores the volatility of the cryptocurrency market and advises caution in financial decisions.”*

References: Sources consulted are duly Hyperlinked.

Follow me on: X(formerly twitter)@Oxmarkdams or @realmarkdamasco