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Author Topic: "Hard Cap and Soft Cap"  (Read 472384 times)
crestella
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March 04, 2018, 06:40:56 AM
 #61

Hard cap is the maximum amount to be increased by ICO. If ICO reaches a hard stamp, they will stop raising funds again.
Soft cap generally refers to the minimum quantity offered by the initial coin ICO. If ICO can not raise that amount, then the fund can be canceled and the collected funds are returned to the participant.
KlepZ
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March 04, 2018, 07:22:09 AM
 #62

softcap is a minimum of earnings in the can and hardcap is the maximum income example of softcap $ 5M if their ICO to 5m can be successful but if not terlampampui softcap eat sales will continue to do different again with hardcap, hardcap is the maximum limit of income so if ICO getting a hardcap means he's gaining great success
wahyu wida
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March 04, 2018, 07:32:01 AM
 #63

Soft cap is the minimum capital to be raised so that ICO is successful and the project proceeds, otherwise the collected funds are returned. Hard Cap is the maximum capital to be raised in an ICO.
if a project can raised softcap for token sale later certainly many investor are join that project, because with softcap raised it can be consideration the project can raised hardcap later
falapella
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March 04, 2018, 07:40:23 AM
 #64

Coin project, aimed soft cap, the maximum amount of investment difficult caps used to continue.  Also, the hard cap word is used for the maximum number of units for which a coin is to be produced; but in places where this is used, the term soft cap is not found (at least I did not see it).
OrcaTech
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March 04, 2018, 07:42:17 AM
 #65

It's very simple. Soft cap is the minimum that they need to create and develop a prototype product and a hard cap is the amount that is ideally needed for the further development and promotion of the project.
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March 04, 2018, 07:44:27 AM
 #66

softcap is a minimum of earnings in the can and hardcap is the maximum income example of softcap $ 5M if their ICO to 5m can be successful but if not terlampampui softcap eat sales will continue to do different again with hardcap, hardcap is the maximum limit of income so if ICO getting a hardcap means he's gaining great success
Wrong, the team run an ICO to collect funds to established their product or services, if you say earning that means it's considered as a profit already.
Usually when the project is really good it can easily attract investors and normally it will hit its hard cap. On the other hard, if a certain project were not able
to hit their hard cap but they collected the soft cap, they can still continue to develop the project as they have the minimum funding collected.

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BaeNaNa
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March 04, 2018, 07:47:46 AM
 #67

Soft cap is the minimum capital to be raised so that ICO is successful and the project proceeds, otherwise the collected funds are returned. Hard Cap is the maximum capital to be raised in an ICO.
if a project can raised softcap for token sale later certainly many investor are join that project, because with softcap raised it can be consideration the project can raised hardcap later
Yeah, most investor don't want to invest at something that hasn't reached the softcap because they afraid the softcap won't be reached and they have to wait a long time for the refund while they can join other project and make a lot of money. They won't hestitate to put their money if the softcap has been reached.

sunno330
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March 04, 2018, 07:48:12 AM
 #68

Softcap and Hardcap Difference is that minimum and maximum.
Company/Any project take a minimum target and a maximum Target. When Minimum target fill up, then its called soft cap reached and if Maximum target is fill up, then its call Hard cap reached.

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NathanJB
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March 04, 2018, 07:52:41 AM
 #69

What is the difference of hard cap to soft cap? Did we base on this if we are going to invest in altcoins? Share your comments.

In every project, there will be an accounting of the required amount of money that they need in order for their ideas and visions to get translated into the reality. The soft cap is the minimum required amount of the project so that they will be able to at least launch their project. There will be a required minimum of expenses for this. Say for example, they need to hire a specific number of people or buy some certain properties or develop a certain technology. Money is what they need. The hard cap, on the other hand, is the maximum amount of money they need for their project. This means all the necessary expenses for the maximum performance of the project could be financially supported.
Kevin112
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March 15, 2018, 03:56:36 AM
 #70

What is a Hard Cap?
The hard cap of an ICO means the maximum amount of capital that it aims to gather. Most of the up and coming cryptocurrency projects set the hard cap very high. Most of the set hard caps are unlikely to be reached. But famous or hyped projects do reach it with ease. The hard cap is the number of the maximum capital needed and projects will mostly stop accepting additional funding after the hard cap.
If an Initial Coin Offering reaches its hard cap early in the ICO phase then the phase will end early. The tokens will also be distributed earlier than it was going to. If a project doesn’t return the funds gathered over the hard cap it is often a big red flag for investors that they should keep in mind. The hard cap is pretty important because of scarcity which is one of the most important factors for the value of cryptocurrencies. Supply and demand is the main price driving correlation.
 
What is a soft cap?
The soft cap is the capital amount gathered at which the crowdsale event will be considered successful. It is the minimal amount of funds needed and aimed at by the project to proceed as planned. Most of the projects reach their soft caps because an Initial Coin Offering is currently one of the best ways to kick start a project and to raise capital.
The soft cap is not guaranteed to be reached and it has mainly a speculative nature. If it isn’t reached then most of the projects will shut down and return all the raised capital to the investors. Not all do this and some proceed with the project regardless of the capital raised. The project then enters life support mode. For investors it is important that the soft and the hard cap are based on numbers and real plans. Transparent projects are the one who build the most trust with their community.
bjmpoker001
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March 15, 2018, 05:08:30 AM
 #71

What is the difference of hard cap to soft cap? Did we base on this if we are going to invest in altcoins? Share your comments.

soft cap is the minimum goal of raised fund in the ICO, and hard cap is the maximum goal.
ICO will never succeed if soft cap not reached, and if hardcap reached, they will close their public sale.

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wleslie
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March 30, 2018, 06:39:13 PM
 #72

Softcap is the minimum amount that needs to be collected in order to proceed with the project.
Let's say for example that you need at least $100000 to implement your project. That would be your softcap. Which means that if you don't collect that amount then you won't be able to proceed with your project. Usually you have to return the funds to the investors.

Hardcap on the other hand, is the maximum amount you are willing to accept during your ICO.
So if you set the hardcap to $250000 then anyone else trying to invest in your ICO will not be accepted bcause the hardcap was reached. This usually mean your ICO is over.

Hope this was helpful
Altf4
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March 30, 2018, 06:58:56 PM
 #73

In an ICO project it is very important that the token sale could reach the critical part of the project which is the softcap, because it will the datermined that this ICO project is been attracted by investors, when it surpasses the soft cap then , this project may proceed to the target the hard cap level  of the ICO project which is considered to be successful.

Jobbernowl
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March 30, 2018, 07:56:14 PM
 #74

From the point of view of the economy, it is more profitable to invest in projects that have not collected hard cap. If the project is good, it will develop, then with a minimum of initial investment, it can quickly make a lot of X. If the project has collected a lot of investment, then the coin's growth will be slower. However, this works under sterile conditions. If the project does not fail or the developers are not scammers etc.

ProofOfLambo
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March 31, 2018, 10:41:11 AM
 #75

The sofcap is the minimum funding that the project needs and the hardcap is the limit of funds that they consider they can manage. Most of the times they are not properly adjusted.
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March 31, 2018, 11:04:53 AM
 #76

Hard cap is the upper limit of fees that the project organizes. When the desired amount is reached, the ICO closes ahead of time.
Soft cap - the lower limit of fundraising, if ICO does not reach it, it is canceled. In fact, there is some ambiguity about the soft cap. For example, a project can not return money and try to work with what is. In general, any figures in white paper should be justified: both hard cap and soft cap should have a real basis. When the difference between these indicators is too great, you need to pay attention to what is planned to be done with different financing, will not the project become meaningless with small fees, how will the team earn itself, how much time will it take to develop on different occasions?
Boristhecat
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March 31, 2018, 11:05:13 AM
 #77

From the point of view of the economy, it is more profitable to invest in projects that have not collected hard cap. If the project is good, it will develop, then with a minimum of initial investment, it can quickly make a lot of X. If the project has collected a lot of investment, then the coin's growth will be slower. However, this works under sterile conditions. If the project does not fail or the developers are not scammers etc.
Not entirely correct reasoning. If the project has collected a hard cap, then its development will be as easy as possible - without reducing the budget for advertising, costs for bonus and referral programs, etc. That is what allows the project to quickly enter the market.
bohboh
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March 31, 2018, 11:23:23 AM
 #78

Softcap or Hardcap are the two types of fundraising in ICOs. Softcap is the minimum fund to be raised and Hardcap is the motive or target for any fundraising for ICO. If a project didn't reach it's softcap before stipulated time, the project will not be executed but after realizing the softcap, the projects can still carried on.
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March 31, 2018, 11:24:10 AM
 #79

Softcap and hardcap are the measurement of the ICOs success for me. If the softcap is reach then there is a possibility that the project will success! Specially if the hardcap is reach during the campaign period. Some of ICOs are bullish and the possibility of getting the hardcap takes a few time!

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March 31, 2018, 11:25:32 AM
 #80

True softcap is the minimum and hardcap is the maximum. You should be really carefully with the project that has very high hard cap. What kind of project are they, value proposition and why they need that amount of money - these things are important to consider.
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