What are the advantages of setting a hard cap for a new cryptocurrency project?

1 answers

• Jepsen McCormackJul 01, 2023 · 2 years ago
  Setting a hard cap for a new cryptocurrency project is a common practice in the industry. It helps create a sense of scarcity and exclusivity, which can drive up demand and increase the value of the cryptocurrency. Additionally, a hard cap can prevent dilution of the token value. By limiting the supply, the project ensures that each token holds a certain value, which can be attractive to investors. Furthermore, a hard cap can create a sense of urgency among potential investors. Knowing that there is a limited supply available, investors may be more motivated to participate early and secure their share of the tokens. Overall, setting a hard cap can be a strategic move to attract investors and create a strong foundation for the cryptocurrency project.
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