You’ll frequently come across the term “hard cap” if you’re considering investing in an ICO. The maximum number of tokens that can be sold is referred to as a hard cap. The hard cap is the most money the development team is ready to receive in exchange for selling their tokens. The developer team is looking to raise money.
Reaching the hard cap is equivalent to an ICO fundraising campaign’s “sold out” sign. When the hard cap is achieved, and the developers stop accepting investor funds and begin working on their projects, the ICO’s maximal goal has been accomplished.
The development team weighs their requirements and determines how much money should be raised for the hard cap. They try to achieve this while also considering the tokens’ perceived value and economic scarcity.
The maximum quantity of a given token or coin is now sometimes referred to as a “hard cap” in certain places. The utmost number of tokens or currencies that will ever exist on their project’s blockchain is referred to here as the “hard cap.” However, using the phrase “maximum supply” rather than “strict cap” is preferable for these initiatives.
