A Soft Cap, in the context of initial coin offerings (ICOs) and cryptocurrency fundraising, is a threshold that represents the minimum amount of funds that a project needs to raise in order to continue with its development. If the soft cap is not reached, the project may still continue with reduced functionality or scale, or the funds may be returned to the investors.Soft cap is the opposite of the hard cap, which is the maximum amount of funds that a project can raise in an ICO. Once the hard cap is reached, the ICO is closed, and no more funds can be raised.A soft cap is considered as a minimum goal that a project team sets to meet in order to execute the project, if the soft cap is not met, the project may not continue and the funds will be returned to the investors.It's important to understand that the soft cap is not a guarantee that a project will be successful and it's important to conduct your own research and due diligence before investing in any ICO. Additionally, the soft cap is just one of many factors to consider when evaluating the potential success of a project, other important factors such as the team, the technology, and the market demand for the project should also be considered before making any investment decisions.
