Are you new to the cryptocurrency world and feeling a bit lost? Don't worry, you are not alone. The cryptocurrency space can be daunting for newcomers, with its many terms, abbreviations and definitions that can be difficult to understand.
ATAIX crypto glossary will help make sense of some of the most common cryptocurrency terms and definitions. Armed with this information, you'll be ready to start participating in this exciting and innovative new economy!
What is Hard Cap in Cryptocurrency?
When it comes to cryptocurrency, a hard cap is the maximum amount of money that can be raised through a particular crowd sale or initial coin offering (ICO). Once this limit has been reached, no further investments will be accepted.
The hard cap is an important concept to understand when participating in a cryptocurrency crowd sale or ICO. It helps to ensure that the project doesn't receive an overwhelming amount of investment, which could then lead to chaos and/or problems down the road.
In most cases, the hard cap is announced prior to the start of the crowd sale or ICO. This way, potential investors know how much money they can invest and are not left disappointed if the cap has already been reached.
It's important to note that not all cryptocurrency projects have a hard cap. In some cases, the amount of money raised is simply whatever investors are willing to contribute. However, this is not as common as projects with a hard cap.
So, what happens if the hard cap is reached during a crowd sale or ICO? In most cases, the project will either end early or the price of the tokens or coins will be increased in order to allow for more investment.