Flowcarbon Refunds Traders After Delays in Carbon Credit score Token Launch: Report

Former WeWork CEO Adam Neumann’s local weather tech startup Flowcarbon has reportedly began refunding buyers after failing to launch its much-anticipated Goddess Nature Token (GNT).

In keeping with a Forbes report from earlier within the week, the corporate has struggled to understand its imaginative and prescient of tokenizing carbon credit.

Undertaking Raised $38M From Token Gross sales

Flowcarbon initially raised $70 million in 2022, with main buyers like Andreessen Horowitz supporting the challenge. Its Collection A spherical additionally included contributions from Basic Catalyst and Samsung Subsequent, in addition to outstanding Hollywood producers Sam and Ashley Levinson.

No less than $38 million of the cash raised got here from GNT gross sales, although it stays unclear whether or not this determine consists of retail patrons.

The concept was to create a token backed by carbon credit, which characterize one metric ton of carbon dioxide both eliminated or prevented from getting into the ambiance. The cryptocu would have been traded on the Celo blockchain, which itself had purchased $10 million price of GNT to set off its personal emissions.

Nonetheless, it not too long ago emerged that the startup has been returning cash to buyers following lengthy delays in actualizing its plans. It blames the flip of occasions on troublesome market situations and pushback from carbon registries.

In keeping with sources quoted within the Forbes report, those that had invested within the enterprise have been required to signal a waiver, which launched it from any claims and included confidentiality phrases.

Flowcarbon Blames Woes on Banning of Tokenization

In response to questions from Forbes, the challenge confirmed that it has been processing refunds since final yr. Nonetheless, it selected to not make the reimbursements public, as a substitute protecting communication with its backers non-public.

As famous by the publication, Flowcarbon confronted the identical obstacles as a number of different crypto-carbon initiatives that got here earlier than it. As an example, in 2021, Toucan and KlimaDAO tokenized hundreds of thousands of retired carbon credit, sparking considerations about double counting from registries.

In response, Verra, one of many largest greenhouse fuel crediting organizations on this planet, banned the tokenization of retired credit the next yr. The choice then turned an obstacle to Flowcarbon’s token technology plans, sparking frustration amongst its financiers.

Curiously, regardless of the continuing refunds, the startup has maintained a business-as-usual perspective. Its newest social media submit proclaims its upcoming CarbonSmart summit, scheduled for September 23. One of many key subjects to be addressed on the occasion seems to be carbon financing.