Initial Supply Cap refers to the maximum number of coins or tokens that can ever be created for a particular cryptocurrency. This limit is often predetermined by the project’s developers and is crucial for ensuring scarcity.Having a capped supply can help maintain value over time since it prevents inflation that can occur when a currency is continually minted without limit. For example, Bitcoin has a supply cap of 21 million coins, which creates a deflationary model as demand can increase while supply remains fixed.The Initial Supply Cap can affect a project’s market perception and investor interest. A lower cap may suggest a higher potential for value appreciation, while a higher cap could imply greater volatility and less predictability in price movements. Understanding this concept is essential for investors and users, as it directly impacts economic dynamics, investment strategies, and the long-term viability of the cryptocurrency.