Blockchain-based carbon credit platform Flowcarbon, co-founded by former WeWork CEO Adam Neumann, is reportedly issuing refunds to investors following the unsuccessful launch of its much-anticipated “Goddess Nature Token” (GNT).
Investors, including prominent venture capital firm Andreessen Horowitz, have been waiting for over a year for the project to come to fruition, but market challenges and regulatory hurdles led to its indefinite delay.
Flowcarbon Issues Refund
According to a report by Forbes, Flowcarbon began refunding investors in recent weeks. The company cited adverse market conditions and resistance from carbon registries as the key reasons behind the decision to return funds.
A Flowcarbon spokesperson confirmed that refunds had been offered to retail GNT buyers since last year, due to what the company described as “industry delays.” However, the platform did not publicly announce this development, adding an air of quiet to the refund process.
One noteworthy aspect of the refunds involved asking investors to sign waivers releasing Flowcarbon and its affiliates from any claims, along with confidentiality agreements. This suggests that the company is managing investor relations with care as it navigates these troubled waters.
Struggle in Gaining Traction
Flowcarbon’s GNT was designed to be backed 1:1 by carbon credits, certificates large corporations often purchase to offset their carbon emissions. The idea behind the token was to make carbon credits more accessible to everyday investors, allowing them to participate in the carbon offset market.
However, despite the growing interest in tokenizing carbon credits, the project struggled to gain the necessary traction. Flowcarbon’s experience highlights the broader industry difficulties in bringing tokenized environmental credits to a viable market.
The initial buzz around Flowcarbon was significant. The firm secured $70 million in Series A funding in May 2022, with backing from venture capital giants like Andreessen Horowitz, General Catalyst, and Samsung NEXT. At least $38 million of that funding round was reportedly raised through the sale of Flowcarbon’s token.
Flowcarbon’s struggles reflect the broader challenge that blockchain-based environmental initiatives face. While there is an undeniable appetite for greener technologies, successfully marrying the carbon credit market with blockchain’s transparency and accessibility has proven elusive for many.
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