Backpack’s founder addresses two recent waves of FUD and highlights liquidity concerns

Armani Ferrante has acknowledged the recent two waves of FUD affecting Backpack. The industry faced the largest liquidation event in history, sparking concerns about automatic liquidation and rising negative equity among users.

Ferrante pointed out misinterpretations surrounding the issue of about 40 users with negative equity deposits. He clarified that inappropriate posts from Backpack’s Chinese account do not reflect the company’s official views.

Ferrante stressed the critical issue of liquidity in Backpack’s operations. He recommended implementing circuit breakers and vaults as potential solutions to navigate the ongoing challenges in the cryptocurrency market.