Investing in crypto startups can be a bit of a gamble at the best of times, so we’re intrigued to see how AngelBlock’s highly inclusive, non-custodial fundraising protocol will fare when it hosts its first-ever project next month.
AngelBlock is getting the ball rolling with a DeFi project known as SOLA-X, and it’s sure to be an exciting debut from one of the most investor-friendly crypto fundraising protocols yet conceived.
Some of the dangers of investing in crypto startups include so-called “rugpulls”, in which the project’s developers simply take the money and run. Then there’s the added danger that well-intentioned developers simply fail to deliver on their project’s goals, leaving investors with little to show for the capital they plowed into the project. AngelBlock attempts to minimize these risks with a unique non-custodial fundraising protocol that ensures startups actually have to earn their funding by completing a series of predetermined milestones.
AngelBlock has created an alternative funding model with milestone-based payouts and full governance built-into its protocol, ensuring that investors are involved with the project at every step of its development. It’s an extremely original idea, and its potential was recently recognized by International Business Times in its list of hot European startups to watch.
Investors can back projects on AngelBlock’s platform safe in the knowledge that whatever money they pledge will be safely locked up in smart contracts. Projects will only be able to access those funds in increments when they complete each milestone on their roadmap. AngelBlock’s unique governance mechanisms mean investors will be able to vote to determine if each milestone has been achieved satisfactorily, meaning the capital can only be unlocked once they have authorized it. In this way, AngelBlock provides a degree of security that other crypto funding protocols don’t have, and encourages much greater cooperation between project teams and their backers.
Because AngelBlock is decentralized and non-custodial, the entire funding process is fully transparent, not to mention highly inclusive, with anyone able to get involved, even with small amounts of money. Other benefits include AngelBlock’s future-proof compliance, with full adherence to KYC/AML standards and the EU’s MiCA regulations. In addition, AngelBlock operates a zero-fee fundraising model, meaning it doesn’t charge any fees on the funds raised, enabling projects to receive all of the capital pledged to them.
While anyone can invest through AngelBlock, preference is given to Tier-3 investors who stake 500,000+ $THOL tokens. They’ll gain maximum benefits, including a higher ticket allocation and priority access. Tier-2 investors are required to stake between 100,000 and 500,000 $THOL and will have second-highest priority, followed by Tier-3, who must stake between 20,000 and 100,000 $THOL. Finally, Tier-0 investors, who aren’t required to stake anything, will be granted an opportunity to participate after everyone else.
As mentioned, the first project to raise on AngelBlock is SOLA-X, which is described as a DeFi hub that introduces the concept of protocol-managed liquidity and arbitrage to combat issues around impermanent loss and low APY. Funding will kick off in July, AngelBlock said.
AngelBlock has also announced a second project, called DeltaPrime, which will follow SOLA-X. According to AngelBlock, DeltaPrime is a trustless, undercollateralized Web3 lending protocol that aims to maximize capital efficiency for investors without compromising on safety. AngelBlock has promised to reveal more details about DeltaPrime’s raise in the coming weeks.
Source: https://coincodex.com/article/28807/crypto-funding-protocol-angelblock-highlights-investor-protections-as-first-projects-launch/