What is a Hardcap?

Hardcap is the maximum amount of funds that the project team plans to collect during the ICO (Initial Coin Offering — initial coin offering). This is an important metric for investors, which allows them to assess the potential of a project and its prospects in the real estate market.

How does Hardcap work?

During the ICO, the project team sets a certain limit on the amount they want to raise. This limit is called hardcap. If the project reaches this limit before the end of the ICO, then the fundraising process stops. This allows the team to control the fundraising process and prevent the project from being overfinanced.

If the project does not reach the established hard cap by the end of the ICO, this may indicate that the project has not aroused sufficient interest among investors. In this case, the team can either extend the ICO or review its investment strategy.

Examples of Hardcaps

Examples of hardcaps can be found on the websites of ICO projects. For example, a project can install a $ 10 million hardcap. This means that the project team wants to raise no more than this amount during the ICO.

It is important to note that hardcaps may vary depending on the project and its goals. Some projects set higher hard caps to attract more investment and allow for more extensive development of the project. Other projects may set lower hard caps to reduce the risk of over-financing and maintain control over the project.

Hardcap is an important indicator for investors when deciding whether to participate in an ICO. It allows you to assess the potential success of a project and its ability to achieve its goals. However, it is important to remember that in addition to the hardcap, you need to take into account other factors, such as the project team, its technology, and the market where it will be presented.