WeWork CEO’s Flowcarbon Refunds Investors After GNT Launch Failure

Flowcarbon, a Blockchain-based carbon credit project co-founded by WeWork's former CEO Adam Neumann, is refunding investors after the failed launch of its Goddess Nature Token" (GNT).

The firm cited some reasons for the failed launch, including unfavourable market conditions and hitches from carbon registries. It also noted that the voluntary carbon market is under stiff scrutiny, especially regarding the quality of carbon credits.

Flowcarbon Refunds Investors After GNT Failed Launch

According to a Forbes report, the blockchain-based carbon credit project Flowcarbon has started refunding its investors. The project, co-founded by WeWork ex-CEO Adam Neumann, took this move after GNT failed to launch.

Flowcarbon is a climate-focused tech startup that aims to combine carbon credits and blockchain technology. The project raised over $70 million from many investors.

The firm intended to tokenize carbon credits through certificates representing the removal of a metric ton of carbon dioxide from the environment. It focused on using blockchain technology to access the carbon credit market easily.

Also, Flowcarbon planned to launch its native token, Goddess Nature Token" (GNT), to represent its investors' funds in the project.

Notably, most investors, including prominent tech-based venture capital company Andreessen Horowitz, waited more than a year for the token launch. However, the long-awaited launch failed to happen, hence the reimbursement to investors.

According to the report, Flowcarbon contacted its investors via Zoom call to explain the reasons behind the refund. Flowcarbon cited resistance from carbon registries and unfavorable market conditions as key reasons for the refunds.

The project's spokesperson said: It's well known that since last year, we have been offering refunds to retail GNT buyers due to the industry delays, with standard and customary terms, as we continue to grow Flowcarbon as a leader in carbon finance."

The report noted that the project has already issued some refunds recently. The refunding process requires that GNT investors sign a release comprising a broad Waiver of claims against Flowcarbon and its associates.

Carbon Market Faces Tokenization Challenges Amid Increasing Asset Volatility

Flowcarbon's issues and refunds reflect the challenges in the broader carbon markets. Notably, the major problems center on the tokenization of carbon credits and the increasing volatility of assets.

The project planned to tokenize carbon credits using its GNT coins to enable investors to access them globally. Moreover, Flowcarbon proposed a 1:1 backing ratio between carbon credits and GNT, representing the offset of a metric ton of carbon dioxide from the atmosphere.

However, Flowcarbon encountered challenges, including regulatory hurdles, that prevented it from launching the tokens as promised.Flowcarbon isn't alone in the tokenization issues; other entities have encountered similar challenges.

In November 2021, Verra, a top carbon registry, warned against tokenizing carbon credits. The registry noted that such a process could mistakenly recount the credits twice or more.

Verra declared an outright ban over the tokenization of retired carbon credits in May 2022. It's indicated that this move aimed to evade fraud and scams while promoting environmental integrity among institutions and entities.

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