Soft cap vs hard cap crypto

soft cap vs hard cap crypto

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For an Initial Coin Offering ICOthe term hard cap refers to the upper limit on the number of tokens that can be sold.

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Soft Fork vs Hard Fork in Crypto (ETH Classic, Litecoin, BTC Cash...)
A hard cap is the maximum amount of money a company hopes to raise in an ICO. On the other hand, a soft cap is the least amount of funds. On the opposite side of the soft cap is the hard cap. It defines the maximum amount of funds that can be raised during an ICO. Prev. ' It usually refers to a limit on the number of tokens a project puts into circulation. For instance, Bitcoin has a hard cap of 21 million coins.
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What is the Core Purpose of Smart Contracts? Have you ever felt restricted by the boundaries of a single blockchain network when managing your assets? This could lead to speculative behavior among investors, which will surely damage the project in the long term; Negative impact on token distribution � A hard cap could also lead to disproportionate token distribution.