Just months after his release from prison, Changpeng “CZ” Zhao, the billionaire founder of Binance, has re-entered the cryptocurrency arena with a significant investment. His newly formed venture capital firm, YZi Labs, has led a $16 million funding round for Sign, a startup specializing in simplifying token distribution and on-chain credential verification.
Zhao, who served a four-month sentence ending in September for AML compliance failures at Binance, emphasized the importance of secure and transparent token distribution in a statement: “Proper distribution builds trust, and verification is an essential part of it. As more people move on-chain, this is a critical part of the foundational infrastructure.”
Sign’s core offering revolves around facilitating “airdrops,” a popular method for distributing newly created crypto tokens, often to reward early project adopters. This process has become increasingly crucial in the rapidly expanding crypto landscape. Coinbase CEO Brian Armstrong estimates that approximately one million new cryptocurrencies are launched every week, fueled by advancements in AI and other development tools.
Many of these nascent projects utilize airdrops to build community and increase liquidity. However, the process has been plagued by issues such as unmet distribution promises and exploitation by users with multiple accounts. Sign aims to address these challenges with its TokenTable product, which enables project founders to establish clear rules and verify participant identities, ensuring fairer and more secure airdrops.
Sign’s CEO and co-founder, Xin Yan, attributes the company’s impressive revenue growth – from $1.7 million in 2023 to $15 million in 2024 – to the surge in 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 explained. The new funding will be used to expand Sign’s global reach and assist governments in adopting blockchain technology for on-chain identity verification.
The investment round also saw participation from Altos Ventures, HackVC, and Amber Ventures. While YZi Labs describes itself as a venture capital and incubator firm with diverse interests, it has also been referred to as a family office. Currently managing $10 billion in crypto-related assets, formerly under the umbrella of Binance Labs, YZi Labs is now focusing on investments in AI, biotech, and blockchain, with the Sign investment marking Zhao’s first foray back into the crypto world since his release.
Despite his recent legal troubles, Zhao remains a prominent figure in the global financial landscape, ranking 24th on the list of the world’s richest individuals with an estimated net worth of $60 billion.
