The founder of Backpack discusses the recent two waves of fear, uncertainty and doubt (FUD) regarding the platform, stating that the biggest issue is insufficient liquidity.

PANews reported on October 13 that Armani Ferrante, the founder of Backpack, stated on the X platform that the timeline has completely spiraled out of control over the past few days, with some events being absurd and others understandable. The industry has faced a market crash due to the largest liquidation event in history, resulting in many being liquidated, and users are questioning issues related to Automatic Deductions (ADL), negative assets, and compensation. He expressed his continued commitment to thoroughly answering all questions and encouraged inquiries, taking responsibility for users. Ferrante pointed out that there have been two waves of fear, uncertainty, and doubt (FUD) recently: first, about 40 users deposited funds without settling negative assets; this issue, while real and easily resolvable, has been misrepresented; second, inappropriate posts from Backpack's Chinese X account were widely circulated, but that account is operated by local personnel and does not represent the company's stance. He acknowledged that the industry has exposed serious structural flaws in the market, with Backpack's biggest issue being a lack of liquidity, and its weakness has always been the absence of its own internal market maker. While all exchanges require liquidation and automatic deduction mechanisms, Backpack should also minimize such occurrences as much as possible. Various solutions have been proposed for this issue, including circuit breakers and Vaults. Ferrante emphasized that exchanges, as key systems in the Crypto Assets field, should be subject to scrutiny, and FUD presents both an opportunity to reveal weaknesses and a chance to showcase strengths.