The crypto world is buzzing about xStocks, the hottest tokenized stocks platform partnering with major exchanges like Kraken and Bybit. But the real story lies with its developer Backed Finance - a team with a controversial past now riding the "tokenized securities" wave.
From DAOstack Collapse to Crypto Comeback
Backed's founding trio - Adam Levi, Yehonatan Goldman, and Roberto Klein - share a common history as core members of DAOstack, a project that spectacularly failed after raising $30 million in 2018.
The Rise and Fall of DAOstack
- Launched in 2017 during DAO concept skepticism
- Raised $30M across three funding rounds
- Never listed GEN token on any exchange
- Project effectively dead by 2020
- Officially shut down in 2022
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Backed's Team Composition: Strengths and Oddities
LinkedIn reveals a 11-50 person team structured around two key pillars:
Core Competencies
Legal/Compliance (40% of team):
- Experienced AML specialists
- Robust regulatory backgrounds
- Critical for tokenized assets
Technical Talent:
- Ex-21Shares engineers
- Led by CTO Yotam Katznelson
- Building RWA infrastructure
Questionable Appointments
David Henderson (Growth Lead):
- Music Master's degree holder
- Zero crypto/finance experience
- Previous role: university communications
The Unlikely Founding Trio
Three Israeli co-founders with wildly different backgrounds:
| Founder | Background | Current Role |
|---|---|---|
| Adam Levi | Physics PhD (Black Hole research) | Public face of Backed |
| Yehonatan Goldman | Art Gallery Owner | Chief Creative Officer |
| Roberto Klein | Angel Investor (FinTech focus) | Legal/Regulatory lead |
Critical Challenges Ahead
While Backed successfully rebranded from their DAOstack failure, serious concerns remain:
- Liquidity Issues: Thin order books reported
- High Fee Structure: 1.5% trading fees
- Audit Gaps: No published smart contract audits
- Regulatory Risk: Operating in gray areas
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FAQs About Backed and xStocks
Q: Is Backed Finance the same team as DAOstack?
A: Yes, the three co-founders were all core DAOstack members before its collapse.
Q: What makes xStocks different from other tokenized stock platforms?
A: Their exchange partnerships provide wider distribution, but the technology itself shows no clear differentiation.
Q: Should investors trust this team after DAOstack's failure?
A: While people deserve second chances, their track record warrants extreme due diligence.
Q: What regulatory protections does Backed offer?
A: They emphasize compliance staff but haven't published specific licenses or regulatory approvals.
Q: How does Backed generate revenue?
A: Primarily through trading fees and potential future token issuance (though none announced).
The Road Ahead for Backed
The crypto market often rewards good storytelling over substance, but lasting success requires:
- Transparent operations
- Sustainable tokenomics
- Real regulatory compliance
- Technical robustness
Will this be a true redemption story or another cautionary tale? The coming months will prove whether Backed has truly evolved from its "team zero" past.