Former WeWork CEO Adam Neumann’s carbon-credit startup Flowcarbon, that pushed to launch a crypto token to fix climate change, is reportedly repaying its investors for failing to launch the “Goddess Nature Token”, Forbes reports.
Neumann announced to put carbon credits on the blockchain in 2022, touting to create a new crypto token. The launch aimed to typically drive billions of dollars directly to projects working to reduce carbon from the atmosphere. His new startup 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.”
Further, Investors of its “Goddess Nature Token,” pitched, have reportedly been contacted about receiving refunds over the last month. Sources told Forbes that Flowcarbon decided to reimburse the investment amount, instead of continuing to hold them indefinitely. The company had communicated its creditors over Zoom calls.
Additionally, the token purchasers signed a confidentiality agreement and 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. Though, the firm hasn’t been disclosing 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 crypto-carbon project saw increasing demand among renowned backers. Arianna Simpson, General Partner at a16z crypto, called the firm’s token as “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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