Flowcarbon, a climate tech startup co-founded by former WeWork CEO Adam Neumann, is refunding investors after failing to launch its much-anticipated “Goddess Nature Token” (GNT).
The startup, which aimed to merge carbon credits with blockchain technology, raised $70 million in funding from high-profile investors like Andreessen Horowitz in 2022. However, due to market conditions and resistance from carbon registries, the token was never launched, leading the company to issue refunds.
Flowcarbon’s mission was to create a blockchain-based token that would be backed 1:1 by carbon credits, allowing participants to offset their greenhouse gas emissions. Carbon credits are certificates representing a metric ton of carbon dioxide removed from the atmosphere, and Flowcarbon intended to make it easier for people to engage in the carbon market. However, the project faced significant delays and regulatory challenges, particularly concerns from carbon registries about the risk of double-counting credits.
Investors who purchased the token in a presale were recently contacted by Flowcarbon, which offered refunds in exchange for signing confidentiality agreements and waivers of claims against the company. These refunds were reportedly discussed during Zoom calls with investors, and Flowcarbon confirmed that it has been offering refunds to retail buyers due to industry delays.
Despite the strong initial demand for the token, with $38 million raised through token sales, Flowcarbon paused its launch in 2022, citing the need to wait for market stabilization. The company has struggled to realize its vision in an evolving carbon market, which has faced criticism for the effectiveness of carbon credits and allegations of environmental harm. As of now, Flowcarbon has not disclosed its refund process publicly.
With input from Forbes, Techcrunch, Cryptonews, and Cointelegraph.
