Lexicon

The Soft Cap in the context of an Initial Coin Offering (ICO) signifies the minimum financial threshold that must be reached for the fundraising campaign to be deemed successful. This benchmark is critical as it determines whether an ICO can proceed with its project or if it falls short, necessitating the return of the raised funds back to the investors. Establishing a Soft Cap ensures that the project has adequate resources to begin or continue its development before reaching its ultimate funding goal, distinguishing it as an essential facet of the ICO's financial planning and execution strategy.