Sign Raises $50M to Help Crypto Founders Safely Launch Tokens and Conduct Airdrops

The investment in Sign comes at a time when the number of token launches are exploding. As it becomes easier to launch new cryptocurrencies using AI and other tools, there are about 1 million new cryptocurrencies created each week

After Bitcoin, which relies entirely on mining to distribute tokens, the next-largest cryptocurrency by market capitalization is Ethereum, which uses a proof-of-work consensus mechanism. However, unlike Bitcoin, which is designed to be scarce with a hard cap of 21 million coins, there is no limit on the number of Ether tokens that can be created.

The investment in Sign comes at a time when the number of token launches are exploding. As it becomes easier to launch new cryptocurrencies using AI and other tools, there are about 1 million new cryptocurrencies created each week, according to Coinbase CEO Brian Armstrong.

Many of these new projects incorporate token airdrops to bolster their reputation and increase liquidity by delivering free tokens to millions of participants who fulfill certain requirements. However, they often draw scrutiny for delivering fewer tokens than promised or being overrun by scalpers using multiple accounts.

To combat this, Sign developed TokenTable, which attempts to help founders safely launch their tokens and conduct airdrops by setting clear rules and verifying the identity of each participant. CEO and co-founder Xin Yan says Sign’s revenue grew from $1.7 million in 2023 to $15 million in 2024 because of the growing popularity of token airdrops on the TON blockchain.

“TON really boosted us because it has so many users. They have so many tokens and the tokens have so many recipients so large-scale AirDrops became the norm,” Yan said.

Yan says Sign will use the money raised in this round to expand globally and help governments adopt blockchain technology by implementing on-chain identity verification.

Other backers that joined in the The Sign funding round include Altos Ventures, HackVC and Amber Ventures.

YZi Labs describes itself as “a venture capital and incubator firm dedicated to fostering innovation and supporting investments across various sectors," though Bloomberg, citing a YZi Labs employee, has referred to the venture as a family office.

YZi Labs currently manages $10 billion worth of crypto-related assets amassed when it was known as Binance Labs. Since his release, Zhao said he has been focused on investing in AI, biotech and blockchain companies—and Sign represents his first step back into the crypto game.

Zhao was released from a California prison last September after serving four months for failing to implement proper anti-money laundering protocols at Binance, the largest global crypto exchange that he founded in 2017. Despite his stint in prison, Zhao ranks number 24 on the list of the world’s richest people with an estimated net worth of around $60 billion.

This story was originally featured on Fortune.com