What is the meaning of soft cap in the context of cryptocurrency?

3 answers

• Dec 16, 2021 · 3 years ago
  The soft cap in the context of cryptocurrency refers to the minimum amount of funds that a project aims to raise during its initial coin offering (ICO) or token sale. It represents the lower limit that the project needs to reach in order to proceed with its development plans. If the project fails to reach the soft cap, the funds raised will typically be returned to the investors. The soft cap is an important indicator of the project's viability and potential for success. It provides a baseline for investors to evaluate the project's fundraising goals and assess the level of support it has garnered from the community.
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• Dec 16, 2021 · 3 years ago
  Think of the soft cap as the project's minimum fundraising goal. It's like the project saying, 'Hey, we need at least this much money to make it worth our while.' If the project doesn't reach the soft cap, it's usually a sign that there isn't enough interest or support for the project, and it may not be able to proceed as planned. So, the soft cap is an important milestone for a cryptocurrency project, and investors often pay close attention to whether or not it is reached.
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• Dec 16, 2021 · 3 years ago
  In the context of cryptocurrency, the soft cap is the minimum amount of funds that a project needs to raise in order to consider the fundraising campaign a success. It sets a threshold that the project must reach in order to proceed with its development plans. If the soft cap is not met, the project may be deemed unsuccessful and the funds raised will typically be returned to the investors. The soft cap is an important factor for investors to consider when evaluating a cryptocurrency project, as it indicates the level of support and interest from the community. It also provides a measure of the project's viability and potential for success.
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