Failed Crypto Project Leads to Investor Refunds

Adam Neumann, the former CEO of WeWork, is back in the news due to the collapse of his crypto venture, Flowcarbon.

The startup, which aimed to blend carbon credits with blockchain technology, faced significant setbacks after raising $70 million from prominent investors like Andreessen Horowitz.

Flowcarbon’s ambitious project, the “Goddess Nature Token” (GNT), intended to tokenize carbon credits—representations of carbon dioxide removal from the atmosphere. The goal was to leverage blockchain for easier access to the carbon credit market, which McKinsey estimates could be worth over $50 billion by 2030.

Despite the optimistic projections, the launch of GNT faced delays due to market resistance and regulatory issues. As a result, Flowcarbon has begun refunding investors, citing challenges with market conditions and opposition from major carbon registries. The company has communicated these reasons through Zoom calls with affected investors.

The difficulties experienced by Flowcarbon reflect broader issues within the carbon credit sector, including skepticism about tokenization and concerns over double-counting. Under new CEO Dana Gibber, Flowcarbon remains committed to its environmental finance goals, though the refund process has left some investors discontented.