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Reading different white-papers I'm now a bit confused.

Some good projects use the soft cap and hard cap to limit the number of tokens issued during the crowdsale. Sometimes it's not.

More tokens means more money for the project, so why is it counterproductive to have too many tokens to issue?

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It's counterproductive to have an unlimited number of potential tokens issued because potential investors are not incentivized to purchase in the short term.

Limiting the number of tokens with a hard cap creates scarcity and incentive for people to purchase tokens immediately instead of waiting.

With ICO's many people wait to see how the ICO performs in the first few days before deciding to invest or not. The philosophy would be they only want to invest in a successful ICO because the token is more likely to be listed on exchanges.

Some ICO's such as Tezos have so much awareness and support going into the ICO the hard cap would potentially limit the fund raise by a large amount.

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To keep the value up, and not dilute it.

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