Cryptocurrency is increasingly famous in the world, many people choose to invest in cryptocurrency rather than soil because with little money you can buy it. Some people choose to follow Airdrop, ICO, Bitcoin and Altcoin. In this article I want to explain ICO because investing here is very dangerous but it can also benefit you, high risk high return. There are many ways to see whether an Initial Public Offering (ICO) is good or not. One of them is seeing softcap and hardcap.
Softcap is the amount of funds collected when crowdsale. If the softcap is reached, the fundraising is considered to have succeeded. This is the minimum amount of funds needed for the project to go according to plan. Almost all projects can achieve softcap because the ICO is one of the best ways to start projects and to raise funds.
However, the ICO does not guarantee that the softcap will be achieved because investors will also check the whitepaper and their team. If the ICO company does not have an adequate team and their project is unrealistic, it is certain that the softcap cannot be achieved. Unrealistic projects are most likely fraud / coin scams. If the softcap is not achieved, investors will regain their investment.
ICO hardcap is the maximum amount of capital that you want to accumulate. Many crypto projects have hardcap targets to unrealistic numbers, are very difficult to reach. Very few ICOs can meet hardcap, but, with the right team and promotion, they have the possibility to reach that target.
When hardcap is reached, raising funds will stop and the token sales will stop. Furthermore, ICO tokens will be circulated first. If a company continues to receive funds after the hardcap is reached, you must be careful with the coin because this could be a coin scam.
When participating in the ICO, hardcap is an important factor in determining the value of coins in the future. Demand and supply are also important to determine a coin price.
Also read: How to Know Scam Coin
