Hard Cap means the maximum amount of capital a project aims to raise. Most of the cryptocurrency projects that have happened or will happen so far are generally they set hard cap levels too high. Therefore, it is not possible for the projects to reach this determined level. Only very famous or hyped projects that rarely appear can reach these levels. Because the hard cap determines the maximum capital needed, projects often stop accepting additional funds after they reach the hard cap level.

If a project reaches the hard cap level in the early stages, ICO stage is early. will end. Tokens belonging to the project will also be distributed earlier than usual. If a project fails to return the funds raised at the hard cap level, this is a big red flag for investors to keep in mind. Hard cap is very important due to scarcity, which is one of the most important factors for the value of cryptocurrencies.

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