"Hard Cap and Soft Cap"

[BertoloyBTC]

Hard cap is the maximum amount to be raised by an ICO or the maximum token sale of a certain ICO means they have a big resources to start their project. And soft cap is the minimum amount to be raised means limited resources for their project.
If the project doesn't meet the soft cap the project will be postponed and cancelled and the money they received  will be back to the investor.

That details are enough to make every individual understand the concept of ICOs in raising their funds through the token sale which is happenning in the middle of the campaign period to the  end of the ICO sale, so if the soft cap will be heat then it is partly successful and then jf the hard cap will be reach then that ICO project sees a very successful launched of that ICO project.

[islakevin]

Softcap is the term use to for bounty hunters , Meaning they are safe already while hardcap is for everyone , Hardcap means its sold out during ico or crowdsale etc.

[Bagani]

Soft cap is the minimum need to reach of one ICO sales to classify as a successfull project. Have funds to continue the developement of the product. Expenses will not be a problem like activity going somewhere  to have a transaction. While hard cap is the bright future for a project. 100% fund to reach their total plan for the project. Some project pointing out what going on in different amount of money. Hard cap means all plan will be sure happen.

[commander11]

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.

Yes, Hard Cap and Soft Cap are important in analyzing the Token Metric whether the coin has a lot of potential in terms of ROI. For example, investing in a dApp start-up that has a higher Hardcap like 50Million$ or more are not advisable to invest. why? Because the potential holder (token user) of that is limited compare to Blockchain start-up like Ethereum and NEO.

[sukatuku]

"Hard Cap and Soft Cap":
- ICO Hard Cap
An ICO Hard Cap refers to the maximum capital amount that it is aiming to accumulate. Many crypto projects raise the limit very high during the initial phases of its launch. These hard caps are difficult to reach. Nonetheless, it all depends on the popularity of the ICO. If it has been rightly promoted, it can reach the target easily. Hard cap refers to the maximum fund required to set up the business. Projects generally stop accepting bonus funds once the hard cap has been reached.
As and when an ICO reaches the hard cap much before the set time limit, the token sale will eventually come to an end. Further, the ICO tokens will be circulated beforehand. If a project does not return the money raised over the ICO hard cap, it is considered a red signal for stakeholders and this is something that one should bear in mind. When it comes to Initial Coin Offering, hard caps are an important factor that determines its future worth. The demand and supply of these coins also determines the worth of ICOs.
- ICO Soft Cap
Soft Cap refers to the minimum amount of capital raised that will determine the success of the crowdsale and will help the venture to progress forward as intended. Most achieve the ICO soft cap target since Initial Coin Offering is a great way to start a new venture and raise funds.
There is no guarantee that this soft cap will be reached as it is mostly hypothetical. If an aspiring project fails to reach the ICO soft cap, then it will be closed down and all the money will be returned to the ICO investors. However, most projects proceed with their business plan irrespective of the fact whether the set soft cap has been achieved or not. Investors need to make sure that the hard cap and the soft cap are grounded on real plans and numbers. Transparency is a must when it comes to gaining the trust of the community.

[cryptohelp2]

What is the ideal percentage difference between soft cap and hard cap for a good ICO?

[rockybar]

softcap is the minimum capital of fund requirement that the project may run, but there are no guarantee that every ICO may hit its softcap. then the money of the investors who invested on that project will return by the said ICO and project will shut down. coins that are shared on the community will going to be an shitcoins. hardcap is refer to the maximum capital of fund that the project needed to run the said project. but its really difficult for every ICO to reach there hardcap especially if the team are not very active pushing there product to the investors. but some ICO's reach there hardcap because of the products that are very useful, promising project and has an very active team members working hard to gain more investors to there project. thats the difference between softcap and hardcap.

[moonspace]

If the project does not collect a soft cap, then the tokens must be returned to investors. I know one project, which was originally planned to collect software cap 1000 ETH, and then realized that it would not work and reduced it to 150 ETH and recognized ICO held! It's cheating!

Can u name the project...?

[MasterMoon]

I think the difference between softcap and hardcap is the goal. softcap is the initial goal, if the sale of ico has reached softcap, means the capital to create a bounty program has been achieved. and hardcap is the ultimate goal, full benefit if ico program reached hardcap. good ico to follow is ico who has reached softcap, I think. that's just my opinion.

Well I really agree with that because most of ICO's reached softcap has been successful even if they did not reach hardcap on their main stage sale but still the projects continues. Most of ICOs reached softcap they are sure payer on their bounty programs.

[bryant.coleman]

If the project does not collect a soft cap, then the tokens must be returned to investors. I know one project, which was originally planned to collect software cap 1000 ETH, and then realized that it would not work and reduced it to 150 ETH and recognized ICO held! It's cheating!

I would not call it as cheating. They were unable to collect the required amount of ETH as softcap and therefore they reduced the cap and burnt the remaining tokens. Anyone would have done the same.

[ngoanhh21]

If the project does not collect a soft cap, then the tokens must be returned to investors. I know one project, which was originally planned to collect software cap 1000 ETH, and then realized that it would not work and reduced it to 150 ETH and recognized ICO held

[vastmast]

Why is there no distribution if softcap can not be reached?
For example, SoftCap is set at $ 10 million. But the project has collected $ 9 million. is not this enough money collected? Why is the project stopped and they dont pay bounties?

[twobits]

If the project does not collect a soft cap, then the tokens must be returned to investors. I know one project, which was originally planned to collect software cap 1000 ETH, and then realized that it would not work and reduced it to 150 ETH and recognized ICO held! It's cheating!

Can consider it cheating if the soft cap was changed just because the investment is too low. If it's not achieved then it's not achieved, changing the soft cap during the ICO to break the promise that if soft cap not reached all money will be returned is just plain stupid, it's like they make a rules and break it themself anyway.

[Collinberg]

Yes, I look at this when investing in an ICO, I always want to be sure that they would reach their fund raising goal before I invest my own money, it always works for me.

[Nigmar]

Putting into ICOs with achieved delicate top is less unsafe than putting into the tasks that are scarcely upheld by invsetors. You are sheltered as the organization's begin is as of now anchored. On the off chance that it achieves Hard Cap-congrats, the undertaking can begin to do each progression that they have arranged. It doesn't mean its effect will be more noteworthy than the effect of different organizations, yet as far as funds, they ought to be protected and go for their goals.The extends usually utilize these two terms to be the scale ormeasurement of the achievement of the token deal.
The delicate top is the base measure of the token that must be required to pitch to the financial specialists. Usually, the undertaking that can't achieve the delicate top amid the ICO will stop their token deal or task, or drop and after that discount to the financial specialists, and furthermore drop of anything identified with venture advancement. In this manner, numerous undertakings dependably endeavor to come to the softcap.

[mohammedmattar]

Wonderful and adequate answers
I would like to add another angle to answer that may light the way for anyone looking for an answer
Softcap is sufficient financial capacity to achieve project objectives in its lower profile
Or is the minimum financial capacity to start in its thumbnail.
Either hard cap
Is the highest financial ability to start the project and achieve its objectives as stated in white paper

[artemdubina88]

I think the difference is that if the project will collect more money it will be able to more successfully promote and develop your product and idea !

[sithuleee]

Softcap is the minimum amount that they want to run the project and the hardcap is the limit that they have assigned to collect. If the project doesn't meet the softcap then they will refund the investors and cancel the project. If they reach the hardcap then their will be no more rooms for the investors.

[Japinat]

I think the difference is that if the project will collect more money it will be able to more successfully promote and develop your product and idea !

Yeah, let's make it simple, softcap refers to minimum financial requirement to run the project. hardcap refers to necessary amount to run the project with maximum goals. as an investor you should focus on hardcap. if hardcap is so high it is not good for investors because market cap can not grow so much.

I don't think so, the marketcap acan still grow if the demand will increase, bigger marketcap will attract investors because they will think that it's
an ambitious project and if it's manage by a reputable and professional team, then they will trust to risk their money for the future of the project.

[jiya jaena]

I think the difference is that if the project will collect more money it will be able to more successfully promote and develop your product and idea !

Yeah, let's make it simple, softcap refers to minimum financial requirement to run the project. hardcap refers to necessary amount to run the project with maximum goals. as an investor you should focus on hardcap. if hardcap is so high it is not good for investors because market cap can not grow so much.

I don't think so, the marketcap acan still grow if the demand will increase, bigger marketcap will attract investors because they will think that it's
an ambitious project and if it's manage by a reputable and professional team, then they will trust to risk their money for the future of the project.

you're right man, hardcap is really good for invest, because if a project can raise hardcap on the ICO, so, it indicates that the project has good progress to develop, and if the project development goes well, the coin / token will become valuable