Flowcarbon’s carbon credit token initiative, co-founded by Adam Neumann, and the reasons behind the refunds to investors.
Adam Neumann, co-founder and CEO of a blockchain-based carbon credit platform, Flowcarbon is making a refund to investors money after the failed launch of Goddess Nature Token on his platform.
According to a Forbes report on Sept. 11, some of the funds have been released in recent weeks linked to a tech venture firm owned by Andreessen Horowitz, who waited for almost one year for the launch of this token, which never happened.
Regarding refunds, Flowcarbon stated that a tough market environment and resistance from carbon registries remain the primary causes for value refunding. For now, the refunds have not taken the social platform and the general market arena announcing that since last year, Flowcarbon has been offering refunds to retail GNT buyers because of industry delay in compliance with standard terms as the company expands as the next top carbon financier.
It was also stated in the refund investigation that GNT buyers were required to sign a disclaimer claiming that they would not be able to sue both Flowcarbon and their partners, plus some other conditions of non-disclosure.
As it was promised before, one GNT token should be equivalent to one carbon credit, which are certificates that companies purchase to compensate for their emissions of carbon dioxide. There are thousands of CO2 emitters in every credit based on the fact that it measures the volume of CO2 in one metric ton.
The intention of tokenizing the carbon credits was to expand the appeal of the carbon market for different investors; however, only a few players in the industry have demonstrated success with this strategy.
Top VCs Invest in Neumann’s Climate Startup
Flowcarbon, Neumann’s firm, closed $70 million Series A funding in May of 2022 with VC investors, such as Andreessen Horowitz, General Catalyst, and Samsung NEXT, among others, as reported in Crunchbase.
From that $70 million, at least $38 million stemmed from the presale of Flowcarbon’s token with no certainty of whether regular folks invested in it.
As reported by CoinGecko, the total market capitalization of energy and environment-associated tokens stands at $186 million with the POWR tokens of Powerledger and the EWT tokens of the Energy Web Foundation contributing to $176 million; 94% of that value.
