New York, Tuesday, September 17, 2024- Flowcarbon, the climate tech startup co-founded by Adam Neumann, has begun issuing refunds to investors after failing to launch its much-anticipated “Goddess Nature Token” (GNT).
Launched in 2022 with $70 million in funding from investors like Andreessen Horowitz, Flowcarbon aimed to merge carbon credits with blockchain technology. However, the token never materialized, prompting the company to return funds to buyers.
The startup, which sought to tokenize carbon credits to simplify carbon market participation, has cited market conditions and resistance from carbon registries as reasons for the failure. Investors, informed via Zoom calls, were asked to sign waivers and confidentiality agreements as part of the refund process.
Flowcarbon’s struggles highlight broader issues in the carbon credit market, including concerns about tokenization and its potential impact on credit value and integrity. Despite efforts to launch the token, challenges from carbon registries and market volatility led to delays and eventual cancellation.
This development follows controversies around the tokenization of carbon credits, including regulatory actions by prominent registries. Flowcarbon’s refund process has been discreet, with the company ceasing Discord communications in favor of email and other channels.
The failure of Flowcarbon’s token underscores the difficulties in integrating blockchain with carbon markets and the need for clearer regulatory frameworks and market stability.
