Flowcarbon, a climate tech startup co-founded by former WeWork CEO Adam Neumann, is refunding investor funds following delays in launching its “Goddess Nature Token.” This token was intended to be backed 1:1 by carbon credits, which companies use to offset their greenhouse gas emissions. The startup, which announced a $70 million funding round in May 2022 with notable backers including Andreessen Horowitz and Samsung Next, had raised at least $38 million through token sales.
For over two years after its establishment, Flowcarbon could not launch the token. This company sought to make the process of engaging in the carbon credit market by tokenizing these credits but faced hurdles. The carbon credits were planned to be launched in early 2022, but there were some problems with carbon registries and the state of the market.
Flowcarbon Faces Challenges in Tokenizing Carbon Credits, Issues Investor Refunds
More recently, Flowcarbon returned the money to the investors who bought the Goddess Nature Token during the presale. The company cited unfavorable market conditions and Carbon registries’ reluctance to approve transactions as challenges. Refunds have been made alongside specific terms met, such as the clients not being required to pursue further claims on the money and to sign nondisclosure agreements.
While these refund actions have not been disclosed on the company’s official social media platforms, Flowcarbon has disclosed to Forbes that it was accepting to give refund to retail buyers as the industry experienced a slowdown.
The intention of this startup was to tokenize carbon credits to overcome shortcomings associated with the carbon market because most credits are usually retired upon purchase. However, issues surrounding the worth of carbon credits and some regulatory issues make the project a dilemma. Still, Flowcarbon’s action is not the only example of using blockchain in the context of ES initiatives, though there are some setbacks.
Flowcarbon was incubated by Neumann’s family office and has already attracted attention because of its investors and its vision. Although the challenges of operating a company in the evolving carbon market remain, the company stays true to its purpose.
