What is the difference of hard cap to soft cap? Did we base on this if we are going to invest in altcoins? Share your comments.
Nice question! Soft cap is a minimum amount a company needs to run a project while hard cap is necessary for the company to expand. The higher the money the company receives, the higher its profits. And it is necessary a company meet its soft cap as this is the only way the Company can continue its project.
This is probably the most accurate description for ICO projects now, although it is quite sad to me that soft cap is the term used, instead of something more closer to the truth such as "minimum fundraising target". Cap by definition simply just means an upper limit, so soft cap should be the "first limit" or the "initial limit" that helps a company gauge interest.
And the idea that companies can only continue projects if soft cap is met is ridiculous. You either have a team with a good idea and want to do it, or you don't.