Ethereum was the first cryptocurrency to form a foundation in Zug, and its a popular structure. Generally the code and system are open sourced, and a nonprofit foundation controls the money raised in the ICO.
It's not so clear. For Ethereum, it worked well. The foundation is non-profit, financing the creation of an open-source system. And those who donated get to use one instance that system. The rights to use the system come in the firm of transferrable coins, and can turn out to be valuable.
It is not an ideal construction, but can make sense. The foundation is used as a funding vehicle for a common prpject, but it is still non-profit.
The problem is not that setting up such a structure is possible, the problem is the lack of suitable alternative legal structures that are better suited for the job. For that, regulation needs to be relaxed.
1. Tokenizing non-profit foundations (stiftungs), while traditional "stiftung foundation has no shares or members" [1]
2. Pretending that token allocations are unrelated to donations/contributions.
3. Using nonprofit foundations for clearly for-profit speculative activity.
[1] https://en.wikipedia.org/wiki/Stiftung