what is the difference between hard cap and soft cap in ethereum ICO

  • Please someone provide me details about the hard cap and soft cap in ICO. I have to build an ICO with an hard cap. How do I implement it in a smart contract using solidity? Provide me concept behind the hard cap so I will implement the same in a smart contract.

    Does the soft cap usually include funds raised during private and pre-sale rounds?

  • A hard cap is defined as the maximum amount a crowdsale will receive. Most projects set a very high cap that is unlikely to happen. Only very famous projects like Status or Brave browser have reached its hard cap.

    contract crowdsale {
        uint public maximumEther;
        uint public totalEther;
    
        function () payable {
            // Do not accept payment if recaudation is above maximumEther
            if (totalEther + msg.value >= maximumEther) throw;
    
            // Emit tokens
            totalEther = totalEther + msg.value;
        }
    }
    

    A soft cap is the amount received at which your crowdsale will be considered a success. It is the minimal amount required by your project.

    If you do not reach that amount during the ICO then you will allow the investors to retire their apport.

    Why is the soft cap called a cap? It sounds like the hard cap is an actual cap, while the soft cap really is a minimum threshold, or reserve threshold.

    What is Cap standing for?

    @Tosho From the dictionary **cap**: An upper limit; a ceiling: _placed a cap on mortgage rates_

    @FrancescoBovoli Completely agree. _Minimum Goal_ is a more accurate term, and one that was used before the soft/hard cap nomenclature took over.

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Content dated before 7/24/2021 11:53 AM

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