A hidden cap can be thought of like a secret limit on how much candy you can have. Imagine you're at a candy store and you're allowed to pick out as much candy as you want. However, your parent has set a secret limit on how much you can actually take. They haven't told you what the limit is, but if you reach it, you won't be able to take any more candy.
In the same way, a hidden cap is a limit that's set on how much of something you can have, but it's not publicly disclosed. For example, in a fundraising campaign, there might be a hidden cap on how much money can be raised, even though the cap isn't publicly announced. The goal is to control the amount of money raised so that the fundraising campaign doesn't get too big, but the participants don't know about the limit, so they continue to contribute until it's reached.
Initial Coin Offerings (ICOs): In an ICO, a company might set a hidden cap on the number of tokens that will be sold. This is done to control the amount of capital raised and to maintain the value of the tokens. For example, if the company sets a hidden cap of 100 million tokens, but only sells 50 million tokens publicly, the value of the tokens should be higher because the supply is limited.
Venture Capital Investments: A venture capital firm might set a hidden cap on the amount of money they're willing to invest in a startup. This is done to control the amount of equity they give up in the company and to make sure they're able to get a good return on their investment. For example, the venture capital firm might set a hidden cap of $10 million, but only publicly announce that they're willing to invest $5 million.
Real Estate Investments: In a real estate investment, there might be a hidden cap on the amount of money that can be invested. This is done to control the amount of capital invested and to make sure the investment generates a good return. For example, if the investment has a hidden cap of $100 million, but only accepts $50 million publicly, the investment should generate a better return because the investment is smaller and the funds are being invested more efficiently