Hard Cap

In the context of cryptocurrency and blockchain projects, a hard cap refers to the maximum amount of funds that can be raised during an initial coin offering (ICO) or a token sale. This means that once the project has raised the predetermined amount of funds, the sale of tokens or coins will come to an end, and no more tokens or coins will be available for purchase.

The hard cap is usually set by the project team in order to control the amount of funding they receive, as well as to maintain the value of their tokens or coins. It also helps to prevent oversubscription and ensures that the project team does not receive more funds than they need to successfully develop and launch their project.

For example, if a blockchain project has a hard cap of $50 million, once this amount is reached, the sale of tokens or coins will stop, even if there is still demand from investors.

It is important to note that a hard cap is different from a soft cap, which is the minimum amount of funds that a project needs to raise in order to proceed with their development plans.

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