Former WeWork CEO Adam Neumann’s carbon-credit startup Flowcarbon, which aimed to launch a crypto token to address climate change, is reportedly repaying its investors after failing to release the “Goddess Nature Token,” Forbes reports.
Neumann announced the plan to put carbon credits on the blockchain in 2022, with the goal of creating a new crypto token. This initiative was intended to channel billions of dollars directly to projects reducing atmospheric carbon. Flowcarbon proposed creating the first open protocol for tokenizing carbon credits.
As a result, Flowcarbon raised $70 million in funding from Andreessen Horowitz (a16z) and other key investors in 2022.
However, the firm seems to have failed in the token launch, citing “market conditions and resistance from carbon registries.”
Investors of the “Goddess Nature Token” have reportedly been contacted about receiving refunds over the last month. Sources told Forbes that Flowcarbon decided to reimburse the investment amount instead of holding them indefinitely. The company communicated with its creditors over Zoom calls.
Additionally, the token purchasers signed a confidentiality agreement and a release of claims against Flowcarbon and its affiliates.
Token Presale Had Huge Demand: Flowcarbon Former Employee
Knowing that the token would never launch, the company has been refunding investors since last year. However, the firm hasn’t disclosed any details regarding the repayment of funds publicly.
“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.”
During the launch in 2022, Flowcarbon’s crypto-carbon project saw increasing demand among renowned backers. Arianna Simpson, General Partner at a16z crypto, called the firm’s token “best in breed.”
“Adam and Rebekah’s vision is a key part of the story and that is really what gave birth to the company,” Simpson noted.
According to an ex-Flowcarbon employee, there was so much demand for the presale that “everyone was asked to help.” That said, $38 million of that $70 million round was raised through the sale of Flowcarbon’s token.
Later, in July 2022, Flowcarbon CEO Dana Gibber told the Wall Street Journal that the token launch has been paused. Flowcarbon has decided to “wait for markets to stabilize” before launching its products, Gibber added.
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