What is it and why does it attract investors like Mark Cuban?

What is it and why does it attract investors like Mark Cuban?

What are the crypto tokens currently tied to carbon credits? The crypto industry has been facing backlash from environmentalists for the climate impact of the power-intensive crypto mining operations. After China’s crackdown on crypto mining and trading activities, most Bitcoin miners were compelled to move base to other countries. A large chunk relocated to Kazakhstan, which is itself majorly powered by fossil fuels but offers cheaper electricity. This effectively translates into crypto mining at higher emission rates at a time when the world is moving to green energy initiatives. Toucan, launched in October 2021, is a participant of the crypto carbon offset market. It is a decentralised finance (DeFi) project that allows users to purchase carbon credits and have them linked with a digital token called BCT – Base Carbon Tonne, which can then be traded on crypto exchanges. The BCT token is currently trading at $5.97, per data from Coingecko. This makes the total carbon credits worth $101.83 million at the time of writing. The token has achieved a market capitalisation of $41.3 million.

Crypto proponents expect carbon offsets to bring greater transparency in the process as current industry standards are unclear, and the absence of oversight makes it difficult to gauge the performance. A survey by Ecosystem Marketplace in October last year suggested the voluntary carbon offset market was set to cross $1 billion for the first time with all-time market value of $6.7 billion.

When companies aim to compensate for the emissions they generate, they buy these credits that obligate them to participate in carbon reduction projects. Depending on the carbon-removal efficiency and level of activity, carbon credits get traded on the informal market at varying prices. “Offsetting essentially means for every ton we remove, we emit a ton somewhere else,” Kate Dooley, a research fellow at the University of Melbourne who studies the impact of carbon accounting, told Coindesk in an interview.

Skeptics told the WSJ that Klima could potentially reduce transparency in carbon markets. But it has drawn investment from Dallas Mavericks owner Mark Cuban. While Cuban said he owns Klima tokens, he did not share any other details, the WSJ report said. “While the anonymity wasn’t optimal and it’s a bit of a learning experience, if it works, the environmental impact could be consequential,” Cuban told WSJ. However, companies partaking in carbon offsetting do not comprise the major clientele of Toucan. Another crypto token called Klima, which was launched independently yet on the same day as BCT, is currently driving the trading of carbon credits on crypto exchanges. KlimaDAO, the developer of the Klima token, allows investors to purchase their native token using BCT. The Klima token is trading at $148.8 with a market capitalisation of $49.55 million.

“The world’s rapidly scaling voluntary carbon markets need to be run on a transparent, digital and neutral system in order to maximise their impact,” James Farrell, CTO at Toucan Labs told WSJ. Linking with a digital token does not compromise the nature of or the ongoing activities of carbon reduction projects. According to Toucan, opening the carbon offsetting market to crypto trading can improve transparency by giving users access to price points that are publicly visible on crypto exchange websites.

The News Highlights

  • What is it and why does it attract investors like Mark Cuban?
  • Check the latest News news updates and information about business, finance and more.
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
What if Jay Powell is wrong again?  US Fed Decision |  What if Jay Powell is wrong again?
What if Jay Powell is wrong again? US Fed Decision | What if Jay Powell is wrong again?
Subsequent interest rate increases and an eventual reduction in the Fed’s asset holdings would follow as needed, Powell said, while officials monitor how ...
This is the end of Evergrande as China's ownership problems spread
China considers Evergrande spin-off to stem ownership crisis
A group led by China Cinda Asset Management Co., a state-owned bad debt manager and major Evergrande creditor, would take over any unsold property assets, ...
Fed says bond maturity runoff will be key tool to sink balance sheet
NCLAT asks CoC to consider order for 63 moons at DHFL Resolution Concoct
However, in its resolution plan, the CoC had overlooked this provision to the benefit of the Piramal Group. In a significant lift to 63 moons technologies, ...
The UK government has tightened welfare regulations for the unemployed
The UK government has tightened welfare regulations for the unemployed
“Our new approach will help claimants get quickly back into the world of work while helping ensure employers get the people they and the economy needs,” Work ...
Fed says bond maturity runoff will be key tool to sink balance sheet
Fed says bond maturity runoff will be key tool to sink balance sheet
“The Committee intends to reduce the Federal Reserve’s securities holdings over time in a predictable manner primarily by adjusting the amounts reinvested of ...
Bitcoin, Reverse Crypto After Fed Gains
Bitcoin, Reverse Crypto After Fed Gains
“While Powell did indeed sound dovish at the beginning of the press conference, it seems that he failed to offer enough reassurance to really turn the tide of ...
Berthoud students raise money for classmates affected by the Marshall fire – Loveland Reporter-Herald
Berthoud students raise money for classmates affected by the Marshall fire – Loveland Reporter-Herald
The Marshall Fire, which was first reported to authorities on Dec. 30, 2021, is the most destructive wildfire in the state’s history. Nearly 1,000 homes were ...
Pa. passes 40,000 deaths to COVID-19
Pa. passes 40,000 deaths to COVID-19
Why have there been more COVID-19 deaths in 2021 despite the availability of vaccines? In another previous interview, Goldman said that vaccinated ...
Economic indicators flash early warning signal for India's recovery
AI-powered digital skills assessment start-up iMocha raises $14 million
“Without a skill assessment platform to help measure and scale their talent pool, businesses will quickly lose out on talented team members,” said Amit ...
The Xbox Game Pass for Shredders has been leaked on the Microsoft Store
The Xbox Game Pass for Shredders has been leaked on the Microsoft Store
Shredders Xbox Game Pass Release Date Leaked On MS Store 2 The game is coming to PC too, supposedly both on the Windows Store and Steam, but the console ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo