What is a Soft cap and hard cap in ICO?
An ICO hard cap means the highest amount of money that an ICO is planning to collect from the crowd sale. Most of crypto projects and startups set the hard cap so high making it hard to achieve. There are however some well-hyped projects which have reached the maximum capital needed. In most cases when the hard cap is reached the projects stop accepting more funding and the ICO is closed.
An ICO soft cap is the least amount of capital expected to be raised through the ICO for the project to be termed as successful. If this amount is not reached the project is stopped and the amount raised returned to the investors. Most of the ICO projects, however, hit the Soft cap.