Why do most project die if they failed to meet soft cap

[MOProgress]

I think the softcap is the minimum amount which the company requires to start the project without wrecking, so if the minimum required amount is not raised, that can make such project to die off. the only thing is that they need to refund the investors money otherwise that should be called scam.

[ralle14]

These projects stop because not having enough funds to reach the soft cap means there's lack of interest in the project they probably think it's not worth the effort to continue. That's how I see things when an ICO fail.

I can't say much about projects that reached the hard cap and failed to improve because I don't invest in ICOs. If you're losing hope on a project it's probably best to dump the tokens.

OP sounds like he suffered quite a loss.

[jouns]

Yes, you are right, I read somewhere a blog of a venture investor in which he was surprised at the large amounts of money requested by ICO, he claims that will be enough less than one million dollars for launch a project.

[Connor Guzman]

Though some projects do fail and disappear for this reason, not all the project follow this pattern. Some projects uniquely adjust with the soft cap problem and that helps the users to continue with the project.

[5thFear]

Thats true and i like the idea of self investment by the developers before asking investors to join in. Some percentage should be done by the team and developers before the start of the project. But they only take it as a get-rich kind of stuff and nothing more. They usually lack any plans if they reach the hardcap and let the project free float which makes sure the project goes no where.

[yrrehc16]

The soft cap is set to some amount by the ICO team.
This will support the project they are aiming.
Without the soft cap, they can't continue the project as they will be short in budget.
This is one of the biggest problems now.
ICO having lack of investors because there are so many scam ICO which affect the legit ones.

[CoinsOrDie]

I think the softcap is the minimum amount which the company requires to start the project without wrecking, so if the minimum required amount is not raised, that can make such project to die off. the only thing is that they need to refund the investors money otherwise that should be called scam.

But I think those projects will disappear with the money from the investors. These projects will never return money to investors, because they have intended to scam right from the start. There are too many scams and we are wasting time with them

[dipeco]

Because they are losing their motivation to work with the project, because they did not reach their funding goal. I can understand this, but I think there are few teams that keep developing their product, despite the fact, that the soft cap wasn't met.

[bit-freedom]

Depending on project, the soft cap might be an amount that is few million dollars, not everyone has this kind of money. Some startups have the opportunity to pitch about their projects to investors and lucky to get funding, but not all.

[anjohyx]

Most of the project owner also don't prepare any fund for their project, money is coming from ICO token sale, if they can't reach minimum target ( softcap ), how to continue development project platform ? Legit project will return investment fund to investor if decided close the project, actually current situation is even if project reach hardcap also look like dead project, such as tenx, envion, play2live and etc

[zedaq]

Wait, if the project did not collect anything, that is, he did not collect the money that should have been collected on the development of the project, then how can he continue his work? I do not understand the question. If he stops living after money? That is a common situation.

[ShadowBits]

I think some depends 100% on ico with nothing to contribute, i believe a developer needs to have at least  30% of fund needed before doing any ico, but most developer thinks wonder will happen .
To make matter worse, sometimes, even though the hard cap is mistakenly met, they will be giving excuses upon excuses .

They lack the potential to manage multi million dollar gigantic project .
They don't have have the potential and force needed to accelerate the project.
Even some of their white paper is poorly written and unprofessional.
Quite disheartening indeed

Because here inside the crypto space people only got here because they know they could get money fast enough in a short time so they probably dump those coins.

[nswnxtncc]

Because the softcap is the minimum of capital for their operation. If they dont reach softcap, they dont have sufficient money to deploy their project, their project will be failed.

[Kallipso]

I think some depends 100% on ico with nothing to contribute, i believe a developer needs to have at least  30% of fund needed before doing any ico, but most developer thinks wonder will happen .
To make matter worse, sometimes, even though the hard cap is mistakenly met, they will be giving excuses upon excuses .

They lack the potential to manage multi million dollar gigantic project .
They don't have have the potential and force needed to accelerate the project.
Even some of their white paper is poorly written and unprofessional.
Quite disheartening indeed

In my opinion now a lot of projects that are made in haste, which do not have anything solid. A lot of projects that really can not normally write white paper and corny to make a good site, which will be all clear, so I'm not surprised that they do not collect even soft cap.

[The_Tick]

And why spend your money when you can collect them from other people and then if nothing happens just to shrug and say-sorry did not work.

My thoughts exactly.. but risk is the name of the game from both sides. Even getting to that point sometimes takes millions of dollars in personal investment on behalf of the developer. The only accurate way to gauge the success is by evaluating the whitepaper, figuring out what differentiates their product from something else and whether or not that means anything, and how they're going to implement.

In the end we're responsible for our own shortcomings and need to be master-assessors to be master-investors. The digital realm is currently the wild-west but it'll eventually become civilized and even become the new norm. There is however, only one gold rush.

[masterrex]

I think some depends 100% on ico with nothing to contribute, i believe a developer needs to have at least  30% of fund needed before doing any ico, but most developer thinks wonder will happen .
To make matter worse, sometimes, even though the hard cap is mistakenly met, they will be giving excuses upon excuses .

They lack the potential to manage multi million dollar gigantic project .
They don't have have the potential and force needed to accelerate the project.
Even some of their white paper is poorly written and unprofessional.
Quite disheartening indeed

Some of your points are true, But for sure spending with own resources is not that easy to do that's why they are launching their own ICO in that case the chances of raising enough funds are 50/50 in some points if the ICO has created enough noise or Hype exposures the people will get interested and it will invest and buy the offering most of the time people don't read the white paper and they don't care how bad or good is it.

[Kelvinovie2]

Sometimes the market conditions make them loose faith in the project, where they must have collected huge amount of eth and the market becomes unfavourable, that means loss in value which can reduce amount collected, and could discourage Dev in project continuity.

[Braeden Hahn]

Basically they are thinking about the money but I have seen some projects that didn't meet the softcap have created products. That depends on how competent the developer is.It's a new consensus system.

[Febo]

Why do most project die if they failed to meet soft cap

Because moneygrab cant work without actual moneygrab.

[Flamebellow]

They failed to rise the required amount of money to develop the project , therefore the project should be canceled . The problem is that the projects want to raise too much money at the initial stage, when they can not offer anything except promises written on paper to investors. You can often find how they collect millions of dollars for the work that actually costs 100 or 200 thousand. Perhaps they charge the required amount of money for listing on the top exchanges, but in any case this situation is not normal and requires serious changes.