Hidden Cap

Hidden cap is a fundraising strategy employed in blockchain projects where the upper limit of the fundraising goal is kept undisclosed and known only to the project team. This approach is often used in Initial Coin Offerings (ICOs) and similar equity offerings, with the intention of benefiting smaller investors. By hiding the fundraising cap, larger investors are unable to make investment decisions based on the total amount or supply of the asset, which can level the playing field for smaller investors. However, critics argue that hidden caps contradict the principles of transparency, verifiability, and trustlessness that are inherent to blockchain technology.