Soft Cap is the amount of capital raised for a project to be considered successful. In other words, it is the minimum amount of funds needed to keep the project going as planned. Most of the projects realized today can easily reach the soft cap level. One of the biggest reasons for this is that you can do an ICO right now when you start a project and want to raise capital.

Reaching the soft cap level is not guaranteed by projects. This level is mainly speculative in nature. If the soft cap level is not reached, most of the projects are closed and all earned capital is returned to the investors. If the project does not terminate, then it enters life support mode. Therefore, for investors, soft cap and hard cap levels should be based on real plans. It is important. For example, transparent projects are the ones that give the most confidence to the society and investors.

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