How does the concept of hard cap differ from soft cap in the crypto space?

3 answers

• Pooja KulkarniJun 21, 2022 · 3 years ago
  A hard cap in the crypto space refers to the maximum amount of funds that a project aims to raise during its initial coin offering (ICO). Once this limit is reached, the project will no longer accept any more investments. On the other hand, a soft cap represents the minimum amount of funds that the project needs to raise in order to proceed with its development. While reaching the soft cap is not mandatory, it is usually seen as a positive signal for investors as it indicates that the project has enough support to move forward. In summary, the main difference between a hard cap and a soft cap is that the former sets a limit on the maximum funds raised, while the latter sets a minimum threshold for the project to proceed.
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• Bhavya PokalaNov 11, 2021 · 4 years ago
  When it comes to hard cap and soft cap in the crypto space, think of it as a fundraising goal. A hard cap is like the ceiling, the maximum amount of funds a project wants to raise. Once this limit is hit, the project stops accepting investments. On the other hand, a soft cap is like the floor, the minimum amount of funds needed for the project to move forward. While reaching the soft cap is not mandatory, it shows that there is enough interest and support for the project. So, in simple terms, the hard cap is the upper limit, while the soft cap is the lower limit for a project's fundraising.
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• Rivera GainesSep 15, 2020 · 5 years ago
  In the crypto space, a hard cap and a soft cap are two important concepts in the context of initial coin offerings (ICOs). A hard cap refers to the maximum amount of funds that a project aims to raise, beyond which no more investments are accepted. This limit is set to ensure that the project does not raise an excessive amount of funds. On the other hand, a soft cap represents the minimum amount of funds that the project needs to raise in order to proceed with its development. Reaching the soft cap is not mandatory, but it is usually seen as a positive signal for investors, indicating that the project has enough support to move forward. So, the main difference between a hard cap and a soft cap is the upper limit and the lower limit of funds that a project aims to raise.
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