Dialogue Sign Co-founder Xin Yan: Crypto has become the largest global capital market

2025-08-17 11:48:05

Collection

Sustained profitability is necessary to enter the largest capital markets.

Guest: Xin Yan, Co-founder of Sign

Interview: momo, ChainCatcher

When $12 million in buyback funds hit the market, the Sign team is sending a strong signal: they have ample cash flow and are confident in future business growth.

The timing of this buyback launch is much earlier than what Sign co-founder Xin Yan originally planned. At the end of last year, Sign used $10 million in profits to buy Bitcoin, and due to the explosive demand in traditional sectors, they secured multiple orders from government and corporate clients in various countries, resulting in revenue growth that exceeded expectations. Xin Yan predicts that their revenue will exceed $40 million this year.

Currently, most crypto projects have a single product, and their tokens have become the core product, with profit models relying on market cycles, lacking practical applications and long-term value.

Sign is attempting a new, sustainable crypto business model. From Eth Sign to TokenTable, Sign is exploring more foundational, long-term products, increasingly resembling a multi-business parallel "group." Sign is also not limited to the crypto market, starting to provide standard asset issuance, blockchain infrastructure, and other services for more traditional government agencies and listed companies.

Recently, Xin Yan mentioned in a conversation with ChainCatcher that Sign will continuously adjust its product direction based on demand in the ever-changing market to achieve sustainable profitability. After relying on software business for continuous revenue, Sign will also seek to go public at the right time.

The last time ChainCatcher interviewed Xin Yan was on the eve of Sign's TGE, where he shared more about the concept of building a long-term community. Over four months later, in our conversation, Xin Yan shared the latest commercialization progress of Sign and the ambition to define global asset issuance standards as crypto gradually becomes a trend in the future global capital market.

Behind the Buyback: Annual Revenue Will Exceed $40 Million

1. ChainCatcher: Sign recently announced the completion of a $12 million initial token buyback. Why choose to initiate the buyback at this time? What is the specific buyback mechanism? What are the core considerations?

Xin Yan: The decision to buy back tokens at this time is mainly due to the recent poor market conditions, with token prices relatively low. We feel that SIGN is severely undervalued. We will continue to buy back in the future, especially for the portions that investors have not unlocked. We previously conducted two rounds of significant financing, and these shares may be the main source of selling pressure in the next three years, so we want to reduce this portion in advance.

Sign's buyback method is similar to that of traditional listed companies, usually operating on a six-month cycle, unless not profitable. This time we conducted buybacks in both the primary and secondary markets: approximately $8 million worth of tokens were bought back in the secondary market, and about $4 million in the primary market. The primary market buyback mainly targets the earliest investors, as the project has been running for four years, and many investors' funds may be nearing their exit period, with floating profits already many times over.

Of course, in the short term, this can reduce the circulating supply in the market. This buyback has reduced the market circulation by about 1%, and the future unlocking portions for investors will also correspondingly reduce the ratio compared to our previously announced token economic model.

The main purpose of the buyback is still to incentivize new members. If the tokens are all dispersed, team members may lack motivation to work. Many projects suddenly halt because their tokens are all sold out. Using tokens to incentivize team members gives them more motivation to work, which is the best use of this cash.

In the future, our buyback method will further align with that of listed companies. We plan to spin off Sign's physical business for public listing, achieving separation between the foundation and the business entity. In the future, buybacks will be conducted through this listed company entity, which not only makes it more compliant but also allows us to better serve traditional government and enterprise clients.

2. ChainCatcher: What is the source of the funds for this buyback?

Xin Yan: The funds mainly come from the project's stable income. Last year, our revenue reached $15 million, and this year's revenue performance exceeded expectations, further enhancing our cash reserves, which is why we initiated the buyback early.

This year's revenue mainly comes from two aspects: on one hand, the token distribution business TokenTable; on the other hand, collaborations with some countries on projects, where we focus on building customized crypto infrastructure for large clients.

TokenTable's revenue is very stable, with annual revenue expected to be between $10 million and $12 million. We continuously support project asset issuance through channels like BNB Chain, OKX, and Kaito; additionally, Sign's revenue from collaborations with national projects is growing rapidly, with the value contributed by a national project far exceeding that of non-trading products in the crypto market.

Overall, we previously conservatively estimated that TokenTable's basic annual revenue could reach $10 million. This year, we predict revenue will exceed $40 million.

Sustainable Business Model: Crypto-SaaS, Building Infrastructure for Those in Need

3. ChainCatcher: Why are you so optimistic about your revenue? It has been three months since TGE; what are the key focuses and new developments in Sign's business?

Xin Yan: There are mainly three aspects of progress: business expansion into traditional sectors, breakthroughs in national-level project collaborations, and optimization of product experience.

First, in terms of business expansion, we are no longer limited to the crypto market but are extending into traditional sectors. For example, EthSign now has 300,000 active users per month, and part of this year's growth comes from large enterprises that are concerned about the information security of agreements and actively seek to integrate EthSign to enhance confidentiality. TokenTable is also no longer limited to crypto-native assets and is starting to support more asset issuance linked to the traditional world, especially in collaboration with various licensed stablecoin projects.

The most important breakthrough is in national-level projects. By participating in the blockchain infrastructure construction of multiple countries, we have stronger independent development capabilities, not only developing smart contracts on-chain but also independently developing public chains, accumulating development experience on different virtual machines like EVM, SVM, and Move.

Additionally, we have made significant improvements in product experience. Users no longer need a crypto wallet; they can directly use their Twitter account or email to claim tokens, greatly lowering the usage threshold for traditional users. We have also optimized the entire claiming process to better align with the operational habits of ordinary users.

These advancements have allowed us to break free from a singular reliance on the crypto market, forming a healthier and more diversified revenue structure. Especially the technological accumulation and commercial value brought by national projects have enhanced Sign's market competitiveness.

4. ChainCatcher: Sign is increasingly emphasizing business expansion into traditional sectors. How will this change your positioning?

Xin Yan: In the past, the business models in the crypto industry often revolved around a specific narrative direction, developing a single product and then issuing tokens. However, the fragility of this model lies in the fact that once the hype in that field fades (for example, if the DeFi or NFT market cools down), the corresponding token value will lose its worth. Such models also typically lack sustained innovation and profitability, making it difficult to last long.

Sign is attempting a new, sustainable crypto business model. We are establishing a multi-business parallel group model like traditional software companies, not limited to a single direction, but flexibly adjusting strategies based on market demand and continuously launching new products that can generate profits.

Although we have issued tokens, our continuously profitable physical business can also go public independently in the future, and then we can continuously accumulate tokens with profits.

5. ChainCatcher: Which countries and regions are you currently mainly collaborating with? Can you share more specific collaboration cases?

Xin Yan: Thailand, Abu Dhabi. Other countries will be announced one by one.

Specific collaboration cases include helping a central bank issue central bank digital currency (CBDC) and stablecoins, building a subsidy distribution platform for universal basic income (UBI), and assisting Thailand in upgrading its digital ID system to support stablecoin functionality, among others.

6. ChainCatcher: What are the biggest challenges in collaborating with national governments and institutions? What are Sign's advantages?

Xin Yan: Their primary concern is the reliability of the company, and they will repeatedly assess whether we can continue to operate five years from now. In the process of collaborating with them, we need to go through multiple rounds of demonstrations, bidding processes, and provide references and financial data like traditional companies.

Interestingly, while these government agencies are interested in innovative technologies, such as wanting to follow the U.S. in implementing stablecoins, they generally lack specific implementation plans. Our role has gradually shifted from being a technical executor to a comprehensive technology service provider, helping them clarify the implementation path.

Currently, there are very few competitors in this track; the main ones I know of are Sign, Solana, and Ripple. The key to competition lies in whether we can send out a truly knowledgeable team to address their needs rather than just selling our products.

Compared to our competitors, our advantage lies in being more flexible. Without historical ecological burdens, we can adopt a "demand-driven" rather than "product-pushing" cooperation model based on local government needs, helping them develop the functions they truly require.

Crypto is the New Global Capital Market: Defining Asset Issuance Standards

7. ChainCatcher: With the approval of regulations related to stablecoins and other digital assets this year, how do you view the impact of crypto on the global capital market? What role will Sign play?

Xin Yan: I see a clear trend. Crypto will rapidly rise to become a brand new global capital market. Currently, the trading volume of traditional markets like Nasdaq has actually fallen behind that of the crypto market, and the geopolitical restrictions of traditional markets, such as barriers to U.S. listings for Chinese and Russian companies, are weakening their global nature.

In the crypto-driven global capital market, I see three key elements: first, stablecoins; second, high-speed blockchains; and the third is asset issuance standards.

Currently, two of these elements are relatively mature, and Sign is focusing on tackling the third key aspect through businesses like TokenTable. We may play a role similar to traditional "underwriters" in the crypto world, establishing standards for asset tokenization issuance.

The essence of asset tokenization is value packaging and standardization. For example, packaging a company's profitable business into an assessable asset bundle and then issuing corresponding tokens. This model is being adopted by various institutions globally, and even the U.S. is promoting stock tokenization. Their core demand is to gain access to the high liquidity of the crypto market.

This undoubtedly presents a huge market opportunity for us. In this process, we not only provide infrastructure support for countries but also promote the standardization of asset issuance through businesses like TokenTable.

8. ChainCatcher: How far are you from this goal?

Xin Yan: Currently, the direction we are pursuing is completely aligned with our vision. To promote crypto as the largest global capital market, our core focus is to enable global users to easily access crypto infrastructure and establish unified asset issuance standards. Sign is already very close to this goal.

Through TokenTable, we are establishing a complete asset issuance standard system that covers the entire lifecycle management of tokens, including issuance, usage, unlocking, and airdrops, helping project parties better manage their token economic models.

In the future, we plan to further standardize our products and better adapt to market changes and regulatory requirements. For example, the "Digital Asset Market Clarity Act" (CLARITY Act) has put forward clear requirements for the distribution of tokens. Based on these regulatory requirements, I will develop mature product solutions for project parties to help them comply with asset issuance and distribution.

9. ChainCatcher: In addition to focusing on these products, Sign has also invested a lot of energy in the community. For example, you recently planned to launch the Orange Dynasty community and its accompanying APP. What is the purpose of this community APP?

Xin Yan: We have designed many interesting mechanisms for the community, such as using SBT (Soulbound Tokens) to identify member identities. Community members are categorized into four roles based on their contributions, such as the actively interacting "Support Warrior" and the deeply involved "Serious Builder." However, these mechanisms were previously based on Twitter, and it was difficult to obtain data relying mainly on manual assessments, which would be hard to sustain as we scale. Therefore, we spent several months developing an APP, which is expected to launch by the end of the month.

The APP codifies all these mechanisms, building a complete framework that includes community currency and credit scoring systems. Members accumulate credit points through various contributions, and upon reaching certain standards, they can apply to become core team members, working like "civil servants" of the community and receiving regular rewards.

Because the APP's incentive mechanisms are transparent and visible, it will motivate community members more. Additionally, the APP integrates interesting content unique to the community, such as regular chess activities, singing competitions, and member-created mini-games, along with practical features like identity verification.

10. ChainCatcher: Why invest so much effort in building this community? What significance does it have for building the infrastructure of a super-sovereign nation?

Xin Yan: The community is at the core of a project. Having income may make for a decent listed company, but to build a great project, it is essential to have a strong community.

An active community will spontaneously create token usage scenarios. For example, our community has derived a scenario for playing online poker with SIGN tokens. In fact, the usage scenarios of a token should not only be defined by the project party but also require community members to participate in creating them from the bottom up.

The community also serves as a "homeland" for us, providing us with an exclusive user base and creativity, and we will also feed back some functions developed for clients to community users. For instance, the border inspection system technology we developed for the country has been adapted for use in the community APP's identity verification.

I believe the community will gradually realize that traditional nations are defined by physical territories, but this community, which has a common currency, credit system, and social network, is essentially a "digital nation." When members can freely trade, socialize, and start businesses here, the importance of community infrastructure is no less than that of a physical country.