AngelBlock Launches First Platform Raise, Gets Backing From Aleph Zero

Somewhat ironically, AngelBlock announced SOLA-X just days before it revealed that it has received additional capital of its own via Aleph Zero’s Ecosystem Funding Program.

Those who aren’t familiar with AngelBlock yet might want to take a quick look, especially if they’re amenable to investing in some highly promising crypto startups. AngelBlock is a crypto fundraising protocol that’s aiming to democratize access to investing while simultaneously helping to ensure that those investments are safe. 

The concept of crowdfunding is not new to the crypto industry. In fact, it’s a fairly common way for projects to raise money. Rather than approach VCs, the decentralized nature of crypto and its token-based economics means startups can appeal directly to their community of users for funding, offering them early access to their native cryptocurrency tokens in return. But although there are many serious projects out there genuinely seeking funds to transform their idea into reality, there are also plenty of scammers around looking to take advantage of crypto community’s largesse. 

With that in mind, AngelBlock has come up with the idea of milestone-based payouts for projects. With its platform, projects can seek to raise any amount of money they like, however there is a caveat that prevents them from doing a “rugpull”, or taking the money and running. Instead of receiving investor’s funds upfront, they can only access those funds in a series of increments, when they make tangible progress. 

For projects that want to raise money through AngelBlock, they’re required to specify a number of milestones first, with measurable deliverables. Once they reach a milestone, they can then apply to their investors to unlock the next portion of their allotted capital. The investors then get to vote on that milestone, and if they’re not satisfied they can refuse access to those funds and insist that more work is done. In the meantime, the funds will sit securely inside a smart contract. 

It’s a very sensible approach that creates a much safer investing climate and the idea has already caught the attention of the Aleph Zero Foundation. Always seeking ways to expand its own ecosystem, Aleph Zero said it sees AngelBlock as the perfect fundraising vehicle for serious projects building on its own blockchain. To that end, it recently selected AngleBlock as the latest project to join its EFP, with access to both grant funding and its wider ecosystem of crypto projects and partners. 

Like other crypto fundraising protocols, it’s possible to get priority access on AngelBlock by staking the platform’s native token $THOL. For each project, investors will be split into “tiers” based on the amount of tokens they’re willing to stake, with the highest tier being institutional investors, followed by angel investors, value investors and standard investors. The higher the tier, the earlier the access and the bigger the ticket size they’ll enjoy. Still, it’s open to investors of all shapes and sizes, with those in the standard tier not required to stake anything. 

In case you’re wondering, SOLA-X is a cross-chain DeFi Hub that has created an interesting protocol-managed liquidity offering it claims will be able to resolve issues such as impermanent loss and low APY. 

AngelBlock has also announced the second project seeking to raise funds through its platform. It’s called DeltaPrime and it’s another DeFi-focused initiative designed to enable undercollateralized lending while providing overcollateralized protection to users.