Changpeng Zhao, former CEO of Binance, has invested $16 million in Sign, a blockchain platform focused on token airdrops and credential verification, his first investment since serving a four-month prison sentence related to a $4.3 billion settlement with U.S. authorities.
Investment Details
The new investment by Zhao via YZi Labs will most likely help Sign rise in this fast-emerging infrastructure sector for blockchain. Revenues reportedly were driven by growing demand for efficient token airdrop solutions on the TON blockchain; from $1.7 million in 2023 to $15 million in 2024.
According to its CEO, Xin Yan, Sign’s flagship product, TokenTable, solves problems in the airdrop process by verifying the identities of participants and setting clear distribution rules. The functionality has grown very important since projects and founders of cryptos strongly depend on airdrops in the distribution of tokens to onboard new users.
Focus on Blockchain Infrastructure
The move by Zhao reflects the wider commitment of the company to improving blockchain infrastructure. Since his release, he has shifted investment in artificial intelligence, biotechnology, and blockchain technology. That $10 billion investment in crypto assets by YZi Labs furthered that strategy.
The other big investors in the round were Altos Ventures, HackVC, and Amber Ventures. That certainly gives Sign enough impetus to consolidate the company’s position in the industry of token distribution and further expand its blockchain-based identity verification capabilities.
Zhao on the Crypto Market
Though he has returned to the crypto space, Zhao continues to speak out against some of the market trends he sees, especially in the rise of memecoins. While he did note their role in bringing new participants into the space, he questioned their intrinsic value. His social media commentary has highlighted ongoing controversies, including those around the TRUMP coin.
Zhao comments on how investors, on the one hand, are looking for the risks that come with memecoins but, on the other hand, see new opportunities arising because of this market entrant.
Industry Implications
Zhao’s investment could be a further indication that the digital asset market is paying more attention to security and efficiency. Given the current scrutiny over cryptocurrency exchanges and projects, strong compliance measures have to be in place. From his past and recent actions, he really seems to try and go with the regulatory expectations after his past legal issues.
