Edgen Crypto·Sep 21 2025, 03:28Sign Protocol is poised to unlock a substantial volume of SIGN tokens, a move that introduces more supply into the market and is closely monitored by investors for its potential price impact.
Sign Protocol is set to unlock approximately 96.67 million SIGN tokens, valued at an estimated $8.04 million USD. The event, scheduled for September 28th at 18:00 Beijing time, according to data from RootData, could introduce increased supply into the market. Token unlocks of this magnitude typically generate market uncertainty and can lead to bearish sentiment due to potential selling pressure from recipients of the newly available tokens.
On September 28th at 18:00 Beijing time, Sign Protocol will release approximately 96.67 million SIGN tokens into circulation. This tranche of tokens represents a significant capital event, valued at $8.04 million USD, as reported by RootData, a prominent Web3 asset data platform. This specific unlock is part of Sign Protocol's broader tokenomics and vesting schedule, which outlines the timed release of tokens to various stakeholders.
The overall vesting framework for SIGN tokens includes a total supply of 10 billion tokens, with a circulating supply currently at 1.35 billion, representing 13.50% of the total. The Fully Diluted Valuation (FDV) for Sign Protocol stands at $768.77 million. The allocation of SIGN tokens is distributed among Early Team Members (10.00%), Ecosystem (10.00%), Liquidity (1.00%), Community Incentives (39.00%), Foundation (20.00%), and Backers (20.00%). The vesting schedule employs a cliff vesting mechanism, particularly for Community Incentives, where tokens are released after a set waiting period, creating discrete supply injections.
Beyond the imminent unlock, Sign Protocol has implemented several strategic initiatives to manage token supply dynamics and bolster demand. On August 13, 2025, the Sign Foundation executed a $12 million token buyback. This included $8 million in open market purchases, acquiring 117 million SIGN tokens, and $4 million through private settlements. This action effectively reduced the circulating supply by approximately 1.1% and coincided with an 11% intraday price increase for SIGN, indicating a positive market reaction to the proactive measure.
Furthermore, Sign Protocol has introduced technological and user engagement initiatives. In Q2 2025, the V2 zk-Proof Integration was launched, enhancing cross-chain verification efficiency and reducing gas costs for DeFi and DAO operations by roughly 30%. This upgrade aims to attract more developers and users, thereby increasing fundamental demand for the SIGN token. In July 2025, the Orange Dynasty SuperApp infrastructure was launched, integrating on-chain identity, social engagement, and asset distribution, all powered by Sign Protocol's attestation layer. The application incentivizes user interaction with SIGN tokens for daily activities, fostering ecosystem participation. Looking ahead to Q4 2025, Sign Protocol plans a 30% airdrop for SuperApp users, allocated based on accumulated 'Oranges' from in-app tasks. Such airdrops have previously demonstrated significant market impact, with an April 2025 airdrop leading to a 400% surge in trading volume.
Token unlock events typically increase the circulating supply of a cryptocurrency, which can lead to selling pressure as early investors or project teams realize gains or redistribute assets. Historically, approximately 90% of token unlocks result in negative price pressure, with price impact often beginning as much as 30 days prior to the event. Larger unlocks have been observed to cause 2.4 times greater price drops and increased volatility. While team unlocks can trigger significant price declines due to uncoordinated selling, ecosystem development unlocks have shown a positive impact, averaging a 1.18% increase due to their role in providing liquidity and fostering long-term value creation. Investor unlocks tend to exhibit more controlled price performance, often leveraging strategies like over-the-counter (OTC) sales and hedging to minimize market disruption.
Sign Protocol's strategic initiatives, such as the token buyback and ecosystem development through the V2 zk-Proof Integration and Orange Dynasty SuperApp, are designed to counteract the typical negative impacts associated with unlocks. These measures aim to absorb potential selling pressure and generate new demand by enhancing utility and user engagement within the Sign Protocol ecosystem. However, the market's immediate reaction to the upcoming September 28th unlock will largely depend on the behavior of the token recipients and the broader prevailing market conditions, potentially creating short-term arbitrage opportunities or entry points for new investors.
The Sign Protocol unlock event aligns with a broader trend of significant token releases across the cryptocurrency market. For example, September 2025 is projected to see approximately $4.7 billion injected into circulation from various token unlocks, a substantial increase from previous months. Events of this scale, involving projects like SUI, ENA, APT, ARB, and ZRO, underscore the continuous supply-side dynamics that shape liquidity and investor sentiment in the Web3 space. The availability of precise, data-backed insights from platforms like RootData becomes crucial for investors and analysts tracking these moves to understand the potential impact on project valuations and market stability. The interplay between scheduled unlocks and a project's proactive measures to foster utility and manage supply remains a critical factor in determining post-unlock market performance and long-term ecosystem health. Asset data platforms continue to provide critical tools for navigating these complex market dynamics, allowing for real-time monitoring of holdings and transfer activities of on-chain entities, thereby offering higher readability and contextual information for market participants.)
