Flowcarbon, co-founded by former WeWork CEO, refunds investors after failed token launch
- Flowcarbon have refunded investors after failing to launch the Goddess Nature Token (GNT).
- The GNT token was meant to tokenize carbon credits but faced market and regulatory challenges.
- Flowcarbon raised $70M in funding but continues to face delays in the carbon market.
Flowcarbon, a blockchain-based carbon credit platform co-founded by former WeWork CEO Adam Neumann, has begun refunding investors after the highly anticipated launch of its Goddess Nature Token (GNT) was cancelled.
The startup, which promised to revolutionize carbon markets by tokenizing carbon credits, cited tough market conditions and resistance from carbon registries as the primary reasons behind the failure to launch.
The failed GNT token launch
Some investors, including the prominent venture capital firm Andreessen Horowitz, have been waiting over a year for the launch, which never materialized.
The refunds, confirmed by Flowcarbons spokesperson reportedly began a few weeks ago. According to the spokesperson, the refunds to retail GNT buyers were ready since last year but have been delayed due to delays in the industry.
Notably, the refund process required purchasers to sign waivers of claims against the company and agree to confidentiality terms.
The GNT was designed to be backed 1:1 with carbon credits, certificates that large corporations use to offset their carbon emissions. Tokenizing these credits would have allowed broader investor participation in the carbon market.
Despite its promising concept, Flowcarbon failed to overcome the technical and regulatory challenges associated with the project.
However, despite the setback, Flowcarbon remains active in the climate finance sector. The startup raised $70 million in Series A funding in May 2022, with major backers like Andreessen Horowitz, General Catalyst, and Samsung NEXT. While at least $38 million of that sum came from the sale of Flowcarbons token, it remains unclear if retail investors were included.
The broader market for energy and environment-related tokens currently holds a market cap of $186 million, with Powerledgers POWR and Energy Webs EWT accounting for 94% of that value.
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