Soft Cap

Soft cap denotes the minimum amount of funds that a blockchain venture aims to raise during its initial funding round. The soft cap is usually set arbitrarily and serves as a speculative threshold, differing from the hard cap, which represents the maximum amount available for fundraising. If a team fails to reach the soft cap, the funds are typically returned to investors, and the project may cease development. In some cases, projects may continue development even if they fall short of the soft cap.