There are two types of ICO’s
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Capped ICO’s
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Uncapped ICO’s
All capped ICO’s have a soft cap and a hard cap.
Caps are basically ICO funding goals, with the soft cap being the minimum amount of money that an ICO wants to raise.
Often, if the minimum amount is not reached, the project will be abandoned and funds returned to the contributors.
The hard cap refers to the maximum amount of money, that the ICO wants to raise and if the maximum amount is reached, the ICO won’t accept any more payments and any new payments made will be immediately returned to the contributors.
An uncapped ICO will accept any amount of funds that it receives, without any limits at all.
It can be argued that tokens from a capped ICO, will be worth more than tokens from an uncapped project, because of the scarcity factor.
Always do your own research on any ICO and always invest your money wisely.
