What is a soft cap？
In the context of fundraising for a project or a startup, a soft cap refers to the minimum amount of funding required to launch or continue the project's development. The soft cap is the point at which the project is deemed financially feasible and able to proceed.
Unlike a hard cap, which represents the maximum amount of funding that the project aims to raise, a soft cap is typically considered to be a more flexible target. If the soft cap is not met, it may still be possible for the project to proceed, although it may require additional funding or a change in the scope of the project.
The soft cap is often used in the context of initial coin offerings (ICOs) or token sales, where it represents the minimum amount of funds needed to develop and launch a new cryptocurrency or blockchain project. Meeting the soft cap is generally seen as a key milestone for the project, as it demonstrates a level of community support and interest in the project's vision.
Overall, a soft cap can provide a useful benchmark for fundraising efforts, helping project teams set realistic goals and plan their development roadmap accordingly.
Unlike a hard cap, which represents the maximum amount of funding that the project aims to raise, a soft cap is typically considered to be a more flexible target. If the soft cap is not met, it may still be possible for the project to proceed, although it may require additional funding or a change in the scope of the project.
The soft cap is often used in the context of initial coin offerings (ICOs) or token sales, where it represents the minimum amount of funds needed to develop and launch a new cryptocurrency or blockchain project. Meeting the soft cap is generally seen as a key milestone for the project, as it demonstrates a level of community support and interest in the project's vision.
Overall, a soft cap can provide a useful benchmark for fundraising efforts, helping project teams set realistic goals and plan their development roadmap accordingly.
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