Soft Cap

Soft Cap is the minimum amount of capital a cryptocurrency or token project aims to raise during its initial offering. Meeting the soft cap indicates sufficient interest and resources to proceed with development, though it does not guarantee success. If the soft cap isn't reached, funds may be returned to investors, or the project might adjust its objectives. Unlike the hard cap, which is the maximum fundraising goal, the soft cap serves as a benchmark for gauging initial feasibility. It reflects the project's minimum financial requirements for moving forward with planned activities.