An adequate hard cap on the coin circulation, that’s in line with a project’s development goals, is essential to prevent over investment. Over investment can ruin the value and integrity of a particular token if there’s no advance plan in place for the excess funds.
A startup should therefore look at their roadmap and say this is the maximum amount that we need to deliver our best version of the product. And that is the point at which the hard cap should be set.
The cap doesn’t necessarily have to be small but having a hard cap in place that ensures the funds raised is enough to get the product delivered, and not too ambitious, will protect the value of the coin in the long run.