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W L · · 6 min readAdam Neumann’s Flowcarbon: Another WeWork in the making?
WeWork co-founder Adam Neumann walked away from the firm with slightly more than a billion dollars. Meanwhile, thousands of WeWork employees lost their jobs after the company’s valuation plunged from US$47 billion to US$9 billion following a botched IPO in 2019.
Flowcarbon co-founder Adam Neumann / Photo credit: Noam Galai
Conflicts of interest were rife at the firm, the Wall Street Journal reported. There were questionable transactions. There was also Rebekah Neumann, Adam’s wife and the firm’s chief brand and impact officer, who allegedly fired employees because “she didn’t like their energy.”
With this history, it’s not surprising that news of the couple investing in and starting Flowcarbon, a crypto carbon credit startup, has stirred up fierce debate.
Photo credit: Flowcarbon
The company recently announced that it raised US$70 million in an equity and token sale from high-profile investors like Andreessen Horowitz. It’s eyeing a lucrative opportunity: A report by McKinsey estimates that the carbon credit market could potentially grow to US$50 billion by 2030.
Introducing the Goddess Nature Token
Carbon credits are meant to be measurable, verifiable emission reductions from certified climate action projects. Buying them from voluntary carbon markets (VCMs) is a popular way for businesses to mitigate their footprints.
However, three main inefficiencies stand out when it comes to VCMs: lack of financing for carbon credit issuers, market transparency, and credit integrity.
Web3-based solutions like Flowcarbon aim to address these issues by bringing carbon credits on chain. This provides upfront financing for project developers, cuts out inefficient systems and intermediaries, and makes it easier to transact high-integrity carbon credits.
Goddess Nature Token / Photo credit: Tech in Asia
Flowcarbon’s first product, the Goddess Nature Token (GNT) – which sounds like a name the Neumanns might be happy with – is essentially a bundle of individual ERC-20 tokens called GCO2. Each GCO2 token is created from an actual carbon credit that has been “tokenized.”
Blockchain-based carbon credits like the GNT can be traded on decentralized finance exchanges, retired on-chain, and redeemed for off-chain credits. Flowcarbon has chosen to launch on the Celo blockchain.
Climate experts are skeptical of the Web3 approach
Trouble with mainstream acceptance
Can Flowcarbon overcome Verra’s reluctance?
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WeWork co-founders Adam and Rebekah Neumann want to fight climate change with their new venture. Investors bet on Adam’s sales prowess over past antics.
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