WeWork founder’s crypto startup refunds investors after no token launch: Report

Flowcarbon, a blockchain-based carbon credit platform co-founded by WeWork’s former CEO Adam Neumann, is reportedly refunding investors after its once-hyped “Goddess Nature Token” (GNT) failed to launch.

Some refunds have been issued “in recent weeks” after investors — such as tech-focused venture capital firm Andreessen Horowitz — waited over a year for a launch that never happened, Forbes reported on Sept. 11.

Flowcarbon told investors market conditions and resistance from carbon registries were the main reasons behind the refunds.

Flowcarbon does not appear to have publicly disclosed its refunds, with a Flowcarbon spokesperson telling Forbes it was “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.”

Flowcarbon appears to remain actively involved in the climate industry despite failing to launch the GNT token. Source: Flowcarbon/X

Part of the refund process reportedly involved asking GNT purchasers to sign a waiver of claims against Flowcarbon and its affiliates, in addition to certain confidentiality terms.

GNT would have been backed 1:1 with carbon credits — certificates that large companies often purchase to offset their carbon emissions.

These credits represent a metric ton of carbon dioxide that has been removed or prevented from entering the atmosphere. 

Tokenizing carbon credits would theoretically make it accessible to more investors to participate in the carbon market — however, few industry players have managed to make considerable progress.

High-profile VCs backed Neumann’s climate company

Neumann’s firm received $70 million in Series A funding in May 2022, headlined by tech-focused venture capital firm Andreessen Horowitz, General Catalyst and Samsung NEXT, Crunchbase data shows.

At least $38 million of that round was raised through the sale of Flowcarbon’s token, though it isn’t clear whether retail investors were included in that sum.

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Energy and environment-related tokens comprise a combined market cap of $186 million, according to CoinGecko.

Top 5 energy tokens by market cap. Source: CoinGecko

Powerledger’s POWR and Energy Web’s EWT tokens make up $176 million, or 94% of that market.

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