Can company sell its profits in ICO compain?

[kot-begemot]

I want to know the drawbacks of profit selling scenario. Need an advise of the community.

Here is the scenario:

- Suppose, Alice issuing X amount of tokens using ERC20 compatible contract.
- All the tokens that Alice will issue will be worth Y% of company B profits.
- Every quarter Alice is calculating the profits, takes Y% of the company profit and distribute that among token holders.

How would that work from legal side and with taxes. Is it possible? I heard of the case of Polybius bank, but as far as i got it, they operate only with cryptocurrencies, and have not much to do with traditional world.

I would appreciate any kind of help or insight on that.

[1715614466]

1715614466

[1715614466]

1715614466

[1715614466]

1715614466

[avatar_kiyoshi]

ICO is almost same as IPO (Initial Public Offering)/crowd funding, but AFAIK ICO is just using cryptocurrency/token/something like that.

ICO is actually for a companies who want to raise funds outside from traditional.

AFAIK there's no a law about it, so it's vulnerable to be scam, so you should research more before investing.