Metaverse Capital Corp (CSE:FORK) (OTCMKTS:GBCH) told investors Thursday it has invested around US$150,000 of cryptocurrency into GEAR, which is developing a blockchain platform to trade environmental credits.
The firm will buy 150,000 units of GEAR token, allowing Metaverse to gain what it called an 'influential position' on the trading platform as it grows.
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Using strategic partnerships, GEAR wants to integrate its platform with utility providers' systems and supply chains so transactions could be settled in real time, using environmental credits instead of emissions tariffs or taxes.
"Ever since climate change began to show worrisome threats to our planet’s well-being, environmental credit programs have sought to control any possible damage by ‘offsetting’ unsustainable actions with sustainable actions," said Metaverse CEO Shidan Gouran.
"The main trouble with these programs has been a lack of transparency in the programs’ administration, and a lack of liquidity for the credits as assets," he added.
The company boss said these two problems are easily solved using blockchain technology, which is why FORK sees so much potential in GEAR.
"This will improve the overall usability of environmental credits and bolster the broad-scale use of GEAR as a platform for transacting these credits," he said.
Gaining popularity
The firm also highlighted that such environmental credits were gaining popularity, with a 2018 World Bank report indicating that 88 countries are "planning to use or are considering using" carbon pricing and/or market mechanisms, with a further 51 carbon pricing initiatives having been implemented or scheduled.
The total value of carbon pricing initiatives in 2018 was an eye-watering US$82 billion, compared to US$52 billion in 2017.
But despite that, mechanisms for trading such credits - whether for direct use or speculation - are severely limited, noted Metaverse.
GEAR Corp chief executive Indivar Pathak said he was pleased with the investment and noted that Gouran was also one of the first adopters of blockchain technology, which made his belief in GEAR that "much of a better fit".
"We look forward to a productive next several months as we prepare GEAR to launch," Pathak added.
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