The post Flowcarbon Refunds Investors After Canceling Token Launch appeared on BitcoinEthereumNews.com.

Luisa Crawford Sep 13, 2024 04:25 Flowcarbon refunds investors after its planned Goddess Nature Token launch fails due to market challenges and regulatory resistance. Flowcarbon, a blockchain-based carbon credit platform co-founded by former WeWork CEO Adam Neumann, has begun refunding investors following the failure to launch its anticipated “Goddess Nature Token” (GNT). The decision comes after more than a year of delays attributed to challenging market conditions and resistance from carbon registries. Challenges in Tokenization Flowcarbon aimed to revolutionize the carbon credit market by tokenizing carbon credits, making them more accessible to a wider range of investors. Each GNT was designed to be backed 1:1 by carbon credits, which represent a metric ton of carbon dioxide either removed from or prevented from entering the atmosphere. However, the project faced significant hurdles. In November 2021, Verra, a leading carbon registry, cautioned against tokenizing retired carbon credits due to concerns about double-counting the credits’ value. This was followed by Verra’s complete ban on the tokenization of retired credits in May 2022, a move aimed at preventing fraud and ensuring environmental integrity. These regulatory challenges have had a chilling effect on Flowcarbon’s plans, contributing to the repeated delays of the GNT launch. Market Conditions and Investor Sentiment The voluntary carbon market, which saw substantial growth to approximately $2 billion in 2021, has been under scrutiny. Investigations into the quality of carbon credits revealed that some projects had exaggerated their environmental benefits, leading to a decline in the value of carbon credits. As launch dates for the GNT token continued to be postponed throughout 2022, investor frustration mounted. Flowcarbon had initially raised $70 million in funding, including $38 million through the sale of its planned token, from high-profile investors such as Andreessen Horowitz, General Catalyst, and Samsung NEXT. Despite the initial enthusiasm, investor confidence…

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Filed under: News - @ September 13, 2024 4:28 am