AGATE Soft Cap and Hard Cap explained
AGATE ICO is going through its very exciting stage of various pre-ico phases. As a result, we have received an overwhelming response from our investors and few inquiries from our potential investors about the differences between soft-cap and hard-cap.
We would like to take this opportunity to explain the differences in details. As we divulge into explaining these differences, we would also like to remind few important points about our projects to our readers as below.
- As soon as our project reaches its soft cap, it would mean that development will continue and we will go ahead and deliver the commercial product.
- Hard cap is the maximum amount of money which Agate can accept. Please note that there is no certainty that we will collect full amount, hence reaching soft cap is incredibly important milestone for our ICO.
- Even if ICOs reach their hard cap, the real hard cap can be lesser than advertised amount because of various bonuses, discounts, bounties and referrals been offered as incentives to attract more investors and to increase community base.
- As some percentage of funding is collected and then eventually held in crypto, it will always be exposed to market volatility. Currently, as cryptocurrency is going through bearish market, our AGATE ICO being no different is also subjected to these conditions. It is important to highlight that from the start of ICO till now (stage 3), crypto market is down by 13%.
- If you look at AGATE fund allocation, 80% of the total funds received would be allocated to the development of project, marketing, PR and adoption of the platform. Considering the cost of quality development in Australia is higher than most of other countries, 40% of fund will be spent on the development alone. AGATE having its own very comprehensive blockchain ecosystem with several modules needing huge amount of work in various aspects in order to complete them in different phases, adds another point to already justified higher spent on development.
- It should be clear for anyone who is aware of what happens in the background in terms of developing and shaping the project that 40% of potential hard cap is a fair amount to be spent on development to commercialize a project that is so comprehensive and highly technical in nature as ours. The other point to note here is that there are a lot of fiat and crypto liquidity needs in different parts of ecosystem including (but not limited to) mutual account setup with debit card issuer, mutual account setup with financial institution for cash settlement, buffer (money to be kept aside) for transferring fund from exchange to trust account etc.). Having higher liquidity will lead to lower fee, faster fiat settlement and less waiting time for users and merchants.
- We have allocated another 40% on marketing, PR and adoption. We understand that merchant adoption of Agate ecosystem as per the whitepaper will be although very exciting but still a big job for our marketing and PR team. We plan to provide incentives to the participating merchants by providing physical POS terminal for free for mass adoption which can only be accomplished by having access to more funding. This will also help us to provide better hardware and software support.
Experts believe that evaluating ICOs soft and hard cap has to be as per project needs and aspects and there is no off the shelf one solution fits all type of scenarios. Hence considering all the above aspects we have defined our current soft and hard cap.
To find out more on Agate, visit https://www.agatechain.org/
Name: Hamed Taghvaei
Name: Nathan Sabherwal