Flowcarbon, a blockchain-based carbon credit platform co-founded by Adam Neumann, the former CEO of WeWork, is refunding investors after the “Goddess Nature Token” (GNT) failed to launch.
According to Forbes, certain refunds have been issued recently after investors, including the tech-focused venture capital firm Andreessen Horowitz, waited for a launch that never occurred for more than a year.
Flowcarbon informed investors that the refunds were primarily due to market conditions and resistance from carbon registries.
Flowcarbon has not publicly disclosed its refunds, according to a spokesperson for the company who stated to Forbes that it was “well known that since last year we have been offering refunds to retail GNT buyers due to the industry delays, with standard and customary terms, as we continue to grow Flowcarbon as a leader in carbon finance.”
According to reports, some refund processes required that GNT purchasers execute a waiver of claims against Flowcarbon and its affiliates and adhere to specific confidentiality agreements.
Carbon credits, certificates that large companies frequently acquire to mitigate carbon emissions, would have furnished GNT with 1:1 support.
These credits denote a metric ton of carbon dioxide that has been either prevented from entering the atmosphere or removed.
Theoretically, tokenizing carbon credits would enable more investors to engage in the carbon market; however, only a few industry participants have made significant strides.
Neumann’s climate enterprise receives funding from prominent VCs
Crunchbase data indicates that Neumann’s organization secured $70 million in Series A funding in May 2022, with Andreessen Horowitz, General Catalyst, and Samsung NEXT as the primary investors.
The sale of Flowcarbon’s token was responsible for at least $38 million of that round, although it is unclear whether retail investors were considered in that total.
According to CoinGecko, the combined market capitalization of energy and environment-related tokens is $186 million.
Energy Web’s EWT tokens and Powerledger’s POWR tokens account for $176 million, or 94% of the market.
