A hard day’s night?

An explanatory note on the hard cap and soft cap for the Elepig project

Elepig has set a soft cap of 650 ETH and a hard cap of 80,850 ETH. If this defines the lowest and highest levels of the project budget, how could there be such a big difference between the two? First, some definitions:

What is a soft cap?

A soft cap is the minimum that must be raised in order to ensure project viability. If this amount is not raised when the ICO closes, then any Ethereum that has been invested will be returned to the contributing wallets. This will be an automatic process executed by the smart contract itself if the conditions are met. Thus investors can be reassured that their money will be returned on September 30th 2018, if the project is not deemed viable.

Why is the soft cap set at 650 ETH?

At the time of writing 650 ETH is worth approx. $400,000 (£300,000). Based on our experience managing both large and smaller projects for dozens of clients, this would be enough cash to stand up a core team and build the minimum viable product (MVP) as defined in our roadmap.

It would not be enough to undertake any significant marketing activities to build a large user community, or iterate on the MVP to create the truly world-beating product we envision. But it would certainly give us enough time to develop the MVP and in parallel seek alternative funding; what’s more we are already in discussions with a number of private investors in both the UK and abroad.

What is a hard cap?

A hard cap is the maximum amount that the project could raise based on the total tokens being sold * the price that each token sold at.

Why is the hard cap set at 80,850 ETH?

At the time of writing, 80,850 ETH is worth approx $48,000,000 (£36,000,000). This would be enough to build and appropriately market the full Elepig Exchange platform and ecosystem, including secure wallet product, payment card partnership, and academy/incubator.

With a full product offering and marketing activities we believe the following user and turnover projections would in fact be on the conservative side. The figures are based on extensive quantitative market research and proven industry ratios and do not include secondary income streams such as funds withdrawal fees, arbitrage opportunities, and ICO Coin Listing Fees.

By Month 12 annual equivalent projected revenue is estimated at approx $47,000,000 (£35,000,000):