If a project dies because it fails to meet soft cap it means that they depended on only their investor's which isn't right . A good project must have a backup plan and funds to maintain their project even if the funds they get from investors doesn't meet their soft cap.
There are even some projects that didn't do ICO and yet they are still flourishing
Topic: Why do most project die if they failed to meet soft cap - page 2. (Read 605 times)
The lack of team motivation. Imagine that you have set a soft cap and made a token sale, that lasted for several months. After collecting 50 percent of your cap, you refund the investors and that was it. I can understand that the projects die after that.
I think some depends 100% on ico with nothing to contribute, i believe a developer needs to have at least 30% of fund needed before doing any ico, but most developer thinks wonder will happen .
To make matter worse, sometimes, even though the hard cap is mistakenly met, they will be giving excuses upon excuses .
They lack the potential to manage multi million dollar gigantic project .
They don't have have the potential and force needed to accelerate the project.
Even some of their white paper is poorly written and unprofessional.
Quite disheartening indeed
Many companies have a smaller amount of share capital for development, and all hope for investment capital. Sometimes, therefore, the soft cover of the project is overstated, which may sometimes not be achieved, which results in closing a good project. Therefore, this is a very crucial period for both developers and ordinary investors. To make matter worse, sometimes, even though the hard cap is mistakenly met, they will be giving excuses upon excuses .
They lack the potential to manage multi million dollar gigantic project .
They don't have have the potential and force needed to accelerate the project.
Even some of their white paper is poorly written and unprofessional.
Quite disheartening indeed
Soft is the minimum standard for the overall budget of the ICO project. If it is lower than the soft development team will not be able to operate the project, it is very sad. Developers won't return any money to you.
Dependent project to the ico is reflecting competency of the prject it self, i have seen some project was not met the soft cap but it still growing because it was not depends on the ico, it really has working project outside of the ico, but also i see many projects are dead when it is not met the soft cap reflecting the dependent the project to the ico.
Agree! There are ICOs that were not fully dependent on the collected funds. They are somehow funded by the affiliated companies. This is the problem with unregulated platform that anybody or any group can make their project and ICOs even without considering the team. All they think of is then profit.
I think as a project doesn't reach its minimum amount of infestation, the team think that the collected amount will not be sufficient to cover the fund needed for the development of the project. that is why that a project will be stopped.
As a rule, those projects that just wanted to raise money die, all the rest find the strength and ways to continue working and find new investors. At the same time, the team may decide that their project is not as good as they originally intended.
Well, if those projects just aim to raise money for their own benefit and they have failed to meet softcap then most likely they would just launch another project that may have have the possibility of raising more money. Softcap means that this is the amount of money that they need to start the project and if they don't have the determination to reach it then the project would fail. It is either they would just return the money invested or they would run away with the money which is a turn off for investors that's why only a few do invest in ICO projects in which there are no famous names tied to it.
Dependent project to the ico is reflecting competency of the prject it self, i have seen some project was not met the soft cap but it still growing because it was not depends on the ico, it really has working project outside of the ico, but also i see many projects are dead when it is not met the soft cap reflecting the dependent the project to the ico.
As a rule, those projects that just wanted to raise money die, all the rest find the strength and ways to continue working and find new investors. At the same time, the team may decide that their project is not as good as they originally intended.
There are some exception project even though they couldn't reach to their softcap, they continued. Why most of them are stopping the project, because they couldn't take attention of the crypto world.
Of course , it all depends on the idea, but I believe that developers should conduct ICO at least with a minimum viable product. So that investors could evaluate and decide whether to invest or not. But unfortunately, most of them are willing to invest in everything, without understanding, hoping for HYIP, and devious people use it.
There are still some project that choose to continue even if they didn't reach their soft cap.
I think they just don't want to continue knowing that they only have few supporters or they didn't reach their expected support for their project.
I think they just don't want to continue knowing that they only have few supporters or they didn't reach their expected support for their project.
Well the answer is pretty self evident. Most or at least a lot of the ICOs are simply a money grab, where the team lacks the actual passion to go forward with the development of the project. Couple of years ago teams were able to create great products with half a million of dollars, now they are complaining when they are unable to reach their 5 million soft cap. Give me a break.
Its not hard to fake that they have reached soft cap, they just send tokens to their shillers and mark that on their website like they were sold. So even reaching soft cap doesn't mean that project is success.
If they do not meet the soft cap for the coins then that means that the coin is not going to be able to grow, the money that they raise from doing the ico is the money that they use to invest in the things that they can use to make sure that the coin is sustainable, things like the hardware needed to make sure that the coin runs smoothly is bought with that money
Yes, of course the project will get stuck if it is not fulfilled for the soft cup, and the process will be stopped, if the soft cup is not fulfilled the project will float, so this is where the team's role and intense promotion are very important in the success of a project
They aren't motivated anymore when they can't meet their quota.
That's it, why would you pursue something if you already failed and you are expecting to fail because people already know what ICOs are?
That's it, why would you pursue something if you already failed and you are expecting to fail because people already know what ICOs are?
Because Bitcoin never needed an ICO to launch? Because so many good projects are out there, and none of them needed a single cent to develop something good and useful? Because they all believed in the concept of open source and contribution to society?
ICO projects mostly, for me, are incredibly useless. They pretend to develop something but actually just want the money.
Only ICOs for expansion are something I can believe in. A working product that needs money to expand.
If the startup funds cannot be raised, then how successful the project is. No money can be achieved without money. This is an industry that requires the integration of money and technology.
If a project reach softcap usually the project can work it well, unless the developers arent serious enough to launch their project. If I were you pick a good project with working product not those ICOs that doesnt have a working product when launching an ICO. Why? You are not sure of they will really pursue the project once they have enough fund. Having 1million USD as softcap is big already to develop some product. Also, if they are good that's enough fund to list on some decent exchange. That's why I confuse with some project why they dont get listed on an exxhange right away hence they have funds for payment. Sound's fishy right? But probably there are hidden agenda with that.
soft cap is a minimum requirements for a project to start. if it did not reach soft cap then the ICO have no enough funds so it can be considered failure. a project should be good and also with good team.
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