What is the soft cap in the context of cryptocurrency?

Can you explain what the term 'soft cap' means in the world of cryptocurrency? How does it differ from a hard cap?

1 answers
- The soft cap in the context of cryptocurrency is the minimum amount of funds a project needs to raise in order to proceed with its development and operations. It is usually set at a lower amount compared to the hard cap, which represents the maximum amount of funds the project aims to raise. The soft cap acts as a threshold that needs to be reached for the project to be considered successful. If the soft cap is not met, the project may be canceled or the funds may be returned to the investors. The soft cap is an important factor to consider when evaluating the potential of a cryptocurrency project, as it indicates the level of support and interest from the community.
Mar 19, 2022 · 3 years ago
Related Tags
Hot Questions
- 92
What are the best practices for reporting cryptocurrency on my taxes?
- 90
What is the future of blockchain technology?
- 70
What are the best digital currencies to invest in right now?
- 54
How can I buy Bitcoin with a credit card?
- 46
How can I minimize my tax liability when dealing with cryptocurrencies?
- 34
Are there any special tax rules for crypto investors?
- 32
What are the advantages of using cryptocurrency for online transactions?
- 29
How does cryptocurrency affect my tax return?