What is a Hardcap and what happens when it’s reached?

The one thing all cryptocurrency startups hope to reach through their initial coin offerings. Let’s explore what is a hardcap in further detail.

What is a hardcap?

A hardcap is the maximum amount of money that a cryptocurrency startup can raise through its Initial coin/exchange offering (ICO/IEO).

What happens when a hardcap is reached?

Achieving this goal means that a crypto company has sold all of its tokens, moving forward with confidence in creating their product without any setbacks in their roadmap.

Where can I see an ICO/IEO’s hardcap?

You can discover a new cryptocurrency’s hardcap by reading through their whitepaper and more specifically in the details of their funding rounds. 

Once there, you will also be able to see how the funds will be used in case the hardcap is reached. 

Usually, after the softcap has been attained, the tokens that will be sold until the completion of the sale (hitting the hardcap) will be more expensive.

 

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