Soft cap refers to the minimum amount of funds that a cryptocurrency project aims to raise during its initial coin offering (ICO) or token sale. It serves as a financial threshold that indicates the project’s viability. If the project does not reach this amount, it may not proceed, as insufficient funds could undermine its ability to develop and deliver on its promises.Achieving the soft cap often boosts investor confidence, as it signals that there is enough interest and financial support for the project. It can also help attract additional backers who may be more likely to invest once they see that the project has already secured foundational support.Unlike a hard cap, which is the maximum limit of funds that can be raised, the soft cap is more about ensuring a project has the necessary resources to kickstart its operations and development. Hitting or exceeding the soft cap can pave the way for further investments and can signify to the market that the project is on a solid path forward.