Mad Lads: More Than a NFT, It’s a Movement

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

First of all thanks to Sir Armani (Backpack team) for motivating me to write this blog post. I partially put my soul in it ngl😄

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 with a total sales volume of over $140 million USD.

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 co-founded by Armani Ferrante and Tristan Yver, also known in the Solana community for creating the popular Anchor framework, providing several convenient developer tools for writing smart contracts.

Moreover, Armani acts as an advisor for the Serum DEX (now defunct) project which utilizes a Central Limit Order Book (CLOB) and is one core developer of the Sollet wallet.

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 (NFT) and Backpack Exchange (CEX) into the world, and it’s become an indispensable tool. Yet, Backpack’s birth was anything but not ordinary. It emerged in December 2022, 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 sophisticated tools for developers, seasoned traders, and NFT enthusiasts.

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. The crypto world is inherently volatile, and even rapidly growing projects (like Backpack) can face devastating setbacks. In November 2022, the collapse of FTX dealt a harsh blow to the ecosystem and the entire crypto industry. The Backpack team (like many others), lost a significant amount of around $16 million in Operating Capital (or 80% of the total $20 million strategic investment fund from FTX and Jump Crypto).

Similarly, the association between Solana and FTX/Alameda caused the Solana token $Sol price to plummet by nearly 55% (that resulted in $14.22/token on Nov 14, 2022), prompting some ecosystem participants to seek other platforms. Notably, the popular NFT collections Degods and Y00ts opted to leave the chain in December 2022.

Nevertheless, the Backpack team has braved these storms, their survival a testament to community loyalty and the platforms’ underlying strengths. Their continued existence speaks to the power of community support and innovation in the face of adversity. In line with any rapidly scaling project, Backpack’s meteoric rise did create technical complexities. These required consistent optimization and dedicated people to ensure a positive user experience during periods of peak demand.

The worlds of NFTs, decentralized wallets, and Centralized Exchange (CEX) are intensely competitive. To remain competitive, Mad Lads and Backpack have continuously pushed boundaries, cultivating distinctive and cutting-edge offerings.

Why Solana?

Sir Armani started an internship at Apple as a Software engineer and later became an on-chain developer for Ethereum in 2017, where they started working on L2 (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:

Don’t mind the mess and the delicious Doritos😁. source

Armani Ferrante (and his team) have an interest in scaling solutions to play a significant role in their plausible 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: 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 offered a potential breakthrough in blockchain scalability. (which we’ll explore next in depth)
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 (on Mert’s Podcast)

Solana’s Speed Tech

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

Proof of History (PoH)

PoH is used to order and timestamp transactions efficiently. By providing cryptographic proof of the passage of time, PoH enables Solana to achieve high throughput and low latency without sacrificing decentralization or security.

Gulfstream:

A mempool-less transaction forwarding protocol that optimizes network load and allows validators to begin executing transactions ahead of time (Since every validator knows the order of upcoming leaders), further boosting speed and efficiency.

Turbine:

Think of Turbine as a block propagation mechanism. It efficiently broadcasts ledger entries to all nodes by breaking down transaction data into smaller packets. These packets are then propagated across the network by nodes, with each node in a layer responsible for forwarding data to a small set of nodes in the subsequent downstream layer. This approach minimizes communication overhead and facilitates faster transaction processing and network scalability within the Solana ecosystem.

Turbine and Gulfstream offer an efficient mechanism for shared block data and mempool elimination in the Solana blockchain. This architecture contributes to Solana’s scalability and faster transaction processing. source

SVM built upon Sealevel Multi-threaded runtime maximizes performance by efficiently utilizing hardware through parallel processing across validator cores. This enables better scalability as hardware advances. Unlike EVM chains with global fees, Sealevel facilitates localized fee markets, allowing fees to be tailored per smart contract, preventing unrelated transactions (like NFT minting) from impacting swap or DeFi fees.

The EVM processes transactions/smart contracts in a single-threaded manner, meaning that transactions are executed one by one in a sequential order. The SVM processes transactions/smart contracts in a multi-threaded (parallel) fashion, allowing multiple transactions to be executed simultaneously. source

Scaling Solution Analysis between Solana & Ethereum

Both Ethereum and Solana offer innovative scaling solutions with distinct trade-offs. Ethereum focuses on a robust layer 2 ecosystem to complement its base layer, while Solana aims to maximize native layer 1 scalability with unique mechanisms.

To sum up, Solana is Fast and developer-friendly due to low fees as famously coined by the Community “SOL” as “Speed Of Light” or as Anatoly Yacovenko puts it “Solana is the most performant permissionless blockchain in the world”.

Analysis of Mad Lads’ Secondary Market Sales

As an experienced trader (coupled with proficiency in 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.

These metrics can be valuable for collectors and potential investors to get a sense of the overall health and activity of the Mad Lads NFT collection

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 Lad’s price floor today is $26,640, with a 24-hour sales volume of 6,527.623 SOL. The overall NFT market is bullish, and the floor price of Mad Lad NFTs is more likely to rise. (at the time of writing see chart below courtesy of Coingecko)

Analyzing Average Sale Prices through various Marketplaces such as Tensor, Magic Eden, Solanart (on Solana), 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 sold for 244.90 SOL($ 46,883.66). You can view the transactions here and Marketplace here.

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 NFT

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, As of now, approximately 9,966 Mad Lads have been minted, with over 5,200 NFT collectors holding them on the network.

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.

Moreover, 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 according to CryptoSlam data at the price of 6.9 $SOL which was minted on Apr 20, 2023 (6.9 & 4/20 is perfect). Its floor price rose to 85 $SOL at 10:30 p.m. in Hong Kong (this was during the launch in April 2023).

As the first xNFT collection on Solana, Mad Lads pioneered the concept of executable NFTs (which we’ll explore later in depth), solidifying their reputation as innovators. Their achievement is even more impressive considering the broader market conditions in November 2022, where industry leader Backpack suffered losses due to the FTX collapse. Despite this setback, Backpack’s recent $17 million fundraising round led by Placeholder VC demonstrates its continued resilience and market confidence.

Events, contests, and collaborations fostered a strong sense of community and contributed to a positive reputation (e.g. these events, orchestrated by the superteam and Backpack, have given me insight into their hard work, which I deeply respect as I curated this blog post).

Additionally, 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.

How to stake Mad Lads?

1. Open your Backpack, 2. Click on your Mad Lad Nft, 3. Click Stake, 4. Approve transaction. “easy peasy” Source:

Backpack Wallet

A versatile crypto wallet transforming into a Multi-chain or General-purpose platform for decentralized applications (dApps) and currently supporting Solana and Ethereum.

Backpack allows you to:

1. Easily store, send, and receive SOL tokens, other Solana-based cryptocurrencies (SPL tokens), and Ethereum-based assets.
2. Manage and interact with xNFTs: These are special NFTs containing executable code, enabling them to function like mini-applications (e.g. Games, DeFi apps, etc.) directly within the backpack wallet.
3. Potentially discover and run dApps across multiple chains: Backpack aims to offer an easy experience where applications, much like xNFTs, are accessible and operable within the wallet. This removes the need to connect to lots of separate websites and makes interacting with the Dapps more streamlined.

With Top of the line features include:

1. 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.
2. Backpack Wallet is accessible on both mobile and desktop platforms, providing users with a consistent experience across devices.
3. 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, Jupiter, and many more to come 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.

You can achieve a similar UX(user experience) to the sidebar with the Backpack popout by simply hit ”ctrl + g”. Source

Backpack Exchange

A Centralized Exchange (CEX) with on-chain integrated Technology. Its Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority(VARA) ensures a secure and regulated trading environment.

source.

Similarly, Centralized exchanges like Backpack Exchange implemented Know Your Customer (KYC) measures, including collecting government-issued IDs and proof of address, to verify user identities. Moreover, they employ Anti-Money Laundering (AML) protocols to monitor transactions for suspicious patterns. These measures help prevent bad actors from exploiting the platform for illegal activities and protect the integrity of the financial system.

To provide an easy user experience (UX), they have simultaneously secured licenses across multiple global jurisdictions and established premium fiat on-ramps and off-ramps.

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

The exchange’s millisecond order placement and sub-millisecond order cancellation offer a competitive advantage. Source

Backpack exchange key milestones include:

Impressive Trading Volume:

Backpack Exchange’s rapid achievement of high trading volume demonstrates its strong appeal within the Solana CEX Centralized exchange) space.

User-Focused Development:

By prioritizing user-requested features like leaderboards and rewards, Backpack Exchange builds loyalty and a reputation for responsiveness within the CEX landscape and is also available on the Backpack App.

Furthermore, on April 1, 2024, Bitcoin/USDC pairs began trading around the clock (24/7). Within just a few hours, the trading volume for the BTC/USDC pair reached a staggering $14 million. learn more here.

The development team at Backpack, with former FTX ties, has a somewhat mixed reputation. You can admire their technical prowess, while others are wary due to the FTX association.

Nonetheless, people make mistakes (it’s part of the growth), and the world offers a lot of uncertainty — what matters today is that the backpack team (the community in general) learned a lot from those unfortunate events and have already moved on.

Honestly after having our heart torn out by FTX, literally, figuratively, and financially, it feels like nothing can stop us. -Armani Ferrante

Factors Driving Mad Lads and Backpack Community Growth

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:

Mad Lads’ distinct, meme-inspired art style not only makes them immediately recognizable but also creates a sense of fun, attracting a community that appreciates the humor and irreverence, thus reinforcing a shared taste in humor and culture that strengthens the sense of belonging within their community.

Furthermore, the limited supply of Mad Lads NFTs not only increases their perceived value and desirability, fueling a strong secondary market and collector mentality but also underscores their utility beyond aesthetics. Holding them within the Backpack ecosystem can unlock benefits such as staking rewards, access to exclusive features, or potential airdrops.

“Art is to Console those who are broken by life”- Vincent Van Gogh

The explosive growth of the Backpack ecosystem is driven by a clever mix of factors:

A limited supply creating high demand, NFTs offering real utility and potential perks, established success of the Backpack Wallet and Backpack exchange fostering trust, innovative xNFT standard enabling interactive NFTs, and focus on ease of use alongside Solana network growth for mainstream adoption.

Mad Lads creators embody the brand’s adventurous spirit, engaging in real-world exploits like surfing, skydiving, and biking, adding authenticity and excitement that resonates with the audience and attracts those who identify with this adventurous mindset., further fueling the success of the Backpack ecosystem.

What is xNFT?

Before we dive into xNFT, let's just watch a non-obvious AI-generated😆 Video of Armani interviewed by jahris.sol:

“X” in xNFT is NOT “Extinction” but “Executable”. lol

An xNFT (Executable NFT) is a new programmable token standard built on the Solana blockchain (another token standard? “grow the pie” as the saying goes). It is an executable tokenized code that represents ownership rights over its use. This means that an xNFT can itself be a platform for operable web3 applications. Additionally, xNFTs are applications built directly into the digital assets that they represent.

Moreover, xNFTs build upon the core concepts of traditional non-fungible tokens (NFTs), offering enhanced capabilities within the Backpack wallet. While, traditional NFTs primarily represent ownership of digital assets like art, music, and gaming items — xNFTs introduce a new dimension of interactivity.

This interactivity is achieved by embedding executable code directly within the xNFT (utilizing Coral’s developer platform). Instead of a static asset, the xNFT becomes a self-contained platform capable of running native web3 applications (e.g. DeFi, Games, NFT, and other Dapps). Imagine playing games, accessing DeFi protocols; doing chatGPT and social media such as Solcial,— all run directly in the Backpack wallet. This innovation streamlines the Web3 experience and brings a new level of utility to NFTs.

How do xNFTs work?

xNFTs are primarily built using the React xNFT framework, which enables developers to create native web3 applications that run in an isolated browser sandbox within the NFT itself. Hence, this sandbox offers security and prevents malicious code from tampering with sensitive data.

Additionally, xNFTs are created/minted as SPL tokens (Solana’s equivalent of Ethereum’s ERC-20 tokens) on the Solana blockchain. The executable code portion is stored in Solana’s program store with a program ID.

Basically,

When you interact with an xNFT (say, within the Backpack wallet), the code is fetched from the program store and executed locally, ensuring a decentralized experience. Moreover, the xNFT itself doesn’t contain the entire codebase. Instead, it holds the program ID, which acts like a pointer or reference to the code on the program store.

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.

Key Advantages of xNFTs:

1. Enhanced Interactivity: xNFTs can offer complex actions and features beyond simply holding a digital asset.
2. User Control: You have more control over the usage of your assets, without needing to rely on third-party websites.
3. New Possibilities: xNFTs open the doors to:

• Dynamic NFTs that change, based on various conditions.
• NFTs can be used in decentralized games in more interactive ways.
• NFTs that offer utility, like membership passes, tickets, or access rights.

For starters, think of this analogy that Backpack (the wallet) is your smartphone and xNFTs are the Apps on your smartphone. -Oxmarkdams

The future 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! Coral (behind Backpack&Madlads), offers a tantalizing glimpse into the future — a future where NFTs can interact, evolve, and bring a whole new dimension to digital ownership. The team might just be offering us a taste of what’s possible.

FUTURE OUTLOOK

The future outlook for the Backpack team and the potential of 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 are no solutions, only trade-offs”.

Overall

Coral, led by Armani Ferrante, is a general-purpose project that includes xNFTs, meaning anyone can build on it regardless of the blockchain they use.

Backpack and Mad Lads, seem well-positioned within the fast-growing Solana ecosystem. If the team can tackle the challenges they face and maintain their focus on innovation and user experience, the Backpack Wallet, Mad Lads NFTs, and Backpack Exchange can “plausibly” contribute significantly to the success of the Solana network and “potentially” serve as a hallmark of Success to the entire crypto industry.

Caveat! “The Blog emphasizes that it does not contain sponsored content or financial advice. Instead, it offers educational insights into cryptocurrency within the Solana and Coral ecosystem. Readers are urged to research independently and consult financial professionals before investing. The Blog posts underscores the volatility of the cryptocurrency market and advises caution in financial decisions and the opinions reflected herein are subject to change without being updated.”

References: Sources consulted are duly Hyperlinked.

Feel free to reach out to me on Twitter @Oxmarkdams with any suggestions or opinions. If you find this even slightly insightful, please share it — I’ve invested countless hours crafting this content, and your support means everything in helping it reach a wider audience. Thank you.