What Is Hard Cap?
A hard cap is a predetermined limit on the amount of money that can be raised in an Initial Coin Offering (ICO). It is set by the issuer and cannot be exceeded. The purpose of a hard cap is to protect investors from over-investing, as well as to ensure that there are enough funds available for development and marketing activities. Hard caps also help prevent market manipulation by limiting the number of tokens issued during an ICO.
The amount of money raised through an ICO depends largely on its success, so it’s important to set a realistic hard cap before launching your project. If you don’t have enough funds to reach your goals, then setting too high of a hard cap could lead to disappointment among investors who may not receive their desired returns. On the other hand, if you set too low of a hard cap then you risk running out of funding before reaching your objectives. Therefore, it’s important to carefully consider all factors when deciding what should be included in your ICO’s hard cap.