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.
Topic: Can company sell its profits in ICO compain? (Read 277 times)
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.
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.
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