Flowcarbon Issues Refunds for Goddess Nature Token After Launch Failure

Flowcarbon’s Refund Initiative Following Token Launch Failure

Flowcarbon, a climate-focused company co-founded by Adam Neumann, the former CEO of WeWork, is refunding holders of its native cryptocurrency, the “Goddess Nature Token” (GNT), after the anticipated launch did not materialize, as reported by Forbes.

Established in 2022, Flowcarbon secured $70 million in funding from notable investors such as Andreessen Horowitz. The startup’s mission was to tokenize carbon credits, effectively bringing these environmental assets onto the blockchain. The envisioned token was meant to be backed on a 1:1 basis by genuine carbon credits, which are essential tools in the fight against climate change.

Carbon credits serve as a mechanism to mitigate greenhouse gas emissions by allowing their holders to offset a specific amount of emissions. Each credit corresponds to one metric ton of carbon dioxide that has been removed from the atmosphere. While carbon credits are generally acquired directly from project owners or brokers, Flowcarbon aimed to innovate by selling them as crypto tokens.

Out of the total $70 million raised, at least $38 million came from the sale of the Goddess Nature Token. However, recent developments have led the company to reach out to GNT holders to issue refunds. This decision stems from challenging market conditions and pushback from carbon registries, as reported by sources familiar with the situation.

Flowcarbon stated, “It’s well known that since last year we have been offering refunds to retail GNT buyers due to industry delays, with standard and customary terms, as we continue to grow Flowcarbon as a leader in carbon finance.”

In July 2022, CEO Dana Gibber revealed to the Wall Street Journal that the company had paused the token’s launch to “wait for markets to stabilize.” This decision followed the broader turmoil in the cryptocurrency market, particularly after the collapse of FTX, coupled with warnings from the prominent carbon credit registry, Verra, against the tokenization of these credits, which are typically retired upon purchase.

As nations strive for carbon neutrality, the traditional carbon credit market has gained significant traction among investors. In 2022, the market was valued at over $330 billion. The process of tokenization, which aims to integrate these credits into blockchain technology, was envisioned to enhance transparency and accessibility within this burgeoning market.

Recently, initiatives like the tokenized trading project Neutral and DLT Finance, a German brokerage firm, have emerged, successfully establishing a regulated blockchain-backed platform for carbon credits that enables investors to trade these vital environmental assets.