Hard Cap

Local area Submission - Author: John Ma
For a Initial Coin Offering (ICO), the term hard cap alludes to the upper limit on the number of tokens that can be sold. It connects with the maximum amount of funds the development team will collect in exchange for their tokens during that beginning phase of funding.
So in the event that the hard cap is reached during an ICO raising money campaign, the tokens are viewed as sold out for that specific round. All in all, it means that the maximum goal of the ICO event has been accomplished and the engineers are done accepting investor funds in exchange for project tokens.
The decision of how high to set the hard cap is totally up to the development team, with the need to balance the upper limit of the gathering pledges goal with the economic scarcity of the associated tokens (and its perceived worth).
Albeit easily proven wrong, a few sources likewise utilize the term hard cap to allude to the maximum supply of a specific token or coin. In this case, the hard cap would address the issuance limit defined by the protocol of a cryptocurrency. It determines the upper limit of tokens or coins that can at any point come to presence on that specific blockchain network. In this unique circumstance, be that as it may, utilizing the term "maximum supply" appears to be significantly more proper, as "hard cap" is normally used to depict the maximum goal of ICO funding rounds.

Hard cap versus soft cap

While the hard cap characterizes the maximum number of tokens that can be sold during an ICO crowdfunding, the term soft cap alludes to the base feasible funding for a specific project to begin its development. Thusly, the hard cap is regularly set fundamentally higher than the soft cap, as it addresses a gathering pledges goal as opposed to a base practical target.