ImpactScope — Telegram AMA — October 21
On Thursday, October 21, we had the pleasure to welcome to our Telegram chat:
Sean Murphy, Co-Founder
We asked him questions about the development of ImpactScope.
Some sentences have been slightly edited for readability but the meaning has been conserved.
ImpactScope is a Geneva-based social enterprise providing CO₂ offsetting solutions to crypto enthusiasts, bitcoin miners and digital asset marketplaces.
They believe in the power of distributed ledger technology and we are excited by the promise of decentralized digital assets.
However, they are disturbed by the price our planet has to pay for verifying Proof of Work consensus protocols, so Impactscope was created to develop a range of tools and solutions to help mitigate these unintended environmental consequences.
Every single on-chain bitcoin transaction arriving at your exchange or leaving your exchange has a carbon footprint of approx. 300 kgs. That’s roughly the same as the CO₂ emissions of a return flight from London to Paris.
Isn’t it time you started offering your clients carbon-neutral crypto transactions? ImpactScope will help you reduce the carbon footprint of your digital asset marketplace and can provide you with a range of easy-to-integrate APIs, from dashboard CO₂ calculator widgets to real-time fully integrated carbon offsetting solutions. Let us help you formulate and realize your net-zero goals.
Q — Ayeley from GAINS: Please introduce yourself. What did you do before crypto and did you have any other previous venture in crypto?
A — Sean from Impact Scope: My name is Sean Murphy. I’m the co-founder of ImpactScope. I’m an Irish citizen but I have lived in a number of different countries. I have been involved in impact investment management for over 10 years and I have been in the crypto/blockchain space for 5 years, mostly focused on projects at the intersection of blockchain and climate action/sustainability, as a user, developer, and project designer.
In this space previously I had collaborations with ipci.io and I helped local and regional governments in three African countries prepare token issuing white papers for reforestation projects.
Here’s a profile of our team
— Sean Murphy, 10+ years in impact investment management. Expert in the green/not green Bitcoin mining debate.
— Gregg Betz, scaled a company from EUR 40 million valuations to EUR 170 million exits in three years. Two previous EUR 100M exits in the telecoms industry.
— Michele Soavi, former EY, and PwC auditor. One of the few people in Europe currently finishing up a Ph.D. in smart contracts. Previous sustainability consulting contracts with Sony-Ericsson.
— James Atkins, Chairman of Vertis Environmental Finance. EUR 1 billion annually in carbon emissions trading turnover. Clients include Vodafone, Hankook.
Richard Gál, 10+ years of operational experience in IT project management and energy sector business development.
Q — Ayeley from GAINS: What is the ImpactScope project about in a few simple sentences? And what was the inspiration behind it?
A — Sean from Impact Scope: ImpactScope is a Swiss company and our mission is to help digital assets become greener. ImpactScope has been active for nine months. Right now we employ seven people. We expect to be 20 before the end of the year. We are growing very fast. There are two sides to ImpactScope’s current business model, B2B2C and B2B.
On the B2B2C side, ImpactScope builds carbon offsetting APIs specifically for digital asset marketplaces (CEXes, DEXes, NFT marketplaces). These platforms are our sales channel partners. After the exchanges plug in our APIs they have the ability to offer their customers the chance to offset the carbon emissions of their crypto trades in real-time by purchasing certified high-quality offsets from ImpactScope.
The technology we replicate is similar to the user experience of reducing the carbon emissions of flying while purchasing an airline ticket. In the case of online airline ticket purchases, it is usually during the final screen of the check-out journey that flyers are given the option of adding on a few dollars or euros to compensate for the carbon emissions of the ticket.
On the B2B side, ImpactScope helps crypto mining pools, crypto mining companies, crypto investment funds, crypto hedge funds, and blockchain companies measure, reduce and offset their operational carbon footprints.
Q — Ayeley from GAINS: You mentioned that ImpactScope has been active for 9 months. Has blockchain always been a part of business operations?
A — Sean from Impact Scope: Developing our own blockchain is the stage of our business development. Here is a little teaser video for what we have in mind
Each token represents a set amount of kgs of CO2. Our tokens are “wrapped CO2 offsets”. Our sales channel partners want tokens. We have spoken to over 25 digital asset marketplaces and many of them would prefer if we could deliver our services and products in the form of tokens, as opposed to traditional carbon offsets (certificates).
Delivering carbon offsets as tokens is cost-effective for our users too. Currently, if a customer wishes to offset 1 tonne of carbon on the ImpactScope.com website and if they want to pay in Bitcoin, the transaction fee can be higher than the cost of the offset. Tokenizing the carbon offsets on an energy-efficient protocol can fix this immediately.
Q — Twitter user @BaitulShuvo: Your project name seems to be very interesting. Does it have any story behind it? Can you share us with the inspiration for approaching this name?
A — Sean from Impact Scope: Thanks for the question @BaitulShuvo — We are all about impact. Climate change impact, environmental impact, social impact, economic impact. But the impact on its own is not enough. It needs to be a transparent impact. At ImpactScope with our new blockchain services, we will be putting impact under a microscope. So the name is a play on words, impact with a big scope but also under a microscope. ImpactScope.
Q — Twitter user @antonio50221026: I understand that ImpactScope carbon offset projects are validated and audited by Verra. But can you elaborate on this program that is used for the certification of GHG emission reductions? What benefits does this certification bring to the projects?
A — Sean from Impact Scope: There is a big difference in quality between carbon offsetting projects all over the world. However, the best guarantee of quality is to deal with carbon offset projects that have been audited and certified by the Top 2 project auditors in this space. That is Verra in Washington and Gold Standard in Geneva. These programs are the best guarantee that the offset carbon is permanently removed, prevented, or sequestered.
Q — Telegram user Md Imran: What are the legal and regulatory guidelines, and how will the organization monitor emerging regulatory considerations?
A — Sean from Impact Scope: Great question. What we are seeing now is that as more digital asset marketplaces become regulated that means greater pressure on them to submit ESG reports and comply with sustainability reporting requirements. Soon most big exchanges will be wholly or partially owned by publicly traded companies. That’s good for ImpactScope’s business.
Q — Ayeley from GAINS: What role does the token play in the ImpactScope ecosystem?
A — Sean from Impact Scope: Although we have not yet made a final decision regarding the protocol on which we will build the ImpactScope token, our shortlist only includes low-fee, energy-efficient native protocols such as Cardano, Avalanche, Polkadot, or existing Layer 2 solutions for Ethereum such as Polygon.
As the token is wrapped carbon, demand for the token is linked to demand for ImpactScope’s carbon reduction services. Maximum allowable supply, real-time circulating supply, and retired inventories are all recorded on public ledgers. This increases transparency and ease of reporting to stakeholders.
Q — Ayeley from GAINS: Talk of your partnership with GAINS, do you have any partnerships with other projects that would support you in your goals of offsetting CO2? You could share some mining pools or investment funds that you are currently working with
A — Sean from Impact Scope: To give your members an overview of some of our current clients, partners, and ongoing projects: — Currently we have a partnership with the biggest crypto lending platform in Switzerland, YouHodler, where you can win a Tesla and offset your crypto carbon footprint:
— We are also in the process of helping one of the world’s fastest-growing crypto mining companies develop its sustainability strategy.
— Last week we were in Dubai where we helped NFT BAZL, the hottest hybrid NFT auction be carbon negative
— We are managing the offsetting of 100,000 NFTs with Clout.art
Plus a dozen other partnerships in the near-term pipeline
Q — Ayeley from GAINS: Did you raise funds for the project so far? If so, how did you handle them? Are you planning to do any future raises?
A — Sean from Impact Scope: Firstly, the ImpactScope founders are experienced executives. We were totally self-funded for the first year of our operations and we have been generating revenue continuously since Day 1. We have never needed external funding to run our day-to-day operations.
Thanks to GAINS we recently raised a seed round for our utility token. With the token raise funding, we will be able to accelerate our own carbon credit (offset) project development. We have a project pipeline worth over USD 10 million and we will bring it to market faster because of the token raise.
Of course, most of the raised funds will go towards the development of our own green blockchain, as well as growing our carbon offset inventory reserves.
We are now in the middle of the second part of our raise.
Q — Ayeley from GAINS: With respect to your roadmap, what should we expect in the next weeks and months?
A — Sean from Impact Scope: We are in talks with Chainlink Labs on a joint project to track global offset pricing using real-world oracles. We’re excited about that. We will also be adding more key team members and integrating with some big-name exchanges
And obviously, we are getting ready for the public sale of the ImpactScope token. Preparing for that is our main priority
Q — Telegram user Md Alom Eslam: Are there any restrictions on using your project? Is it a global or local project?
A — Sean from Impact Scope: We are 100 % global. Our clients and partners come from all over the world.
Q — Telegram user Patrick: They report that ImpactScope supports the Sustainable Development Goals. So, can you give more information about your partners’ projects? On your website, you indicate that you work in Indonesia, Kenya, or Brazil but in the future, you could work in other countries and regions?
A — Sean from Impact Scope: Good question Patrick, we actually have more than 300 projects in our carbon offsetting portfolio, from over 30 countries
About comparisons of the carbon emissions of Bitcoin transactions. Let me say that they are very high. The carbon footprint of a single on-chain Bitcoin transfer is 841 kg.
That is the same carbon footprint as a ticket on a 2-hour return flight, or the same carbon emissions as 1.8 million VISA card transactions, or 16 years of watching YouTube videos non-stop. So you can see we need to help mining companies compensate for this
About the demand for our services, we are operating at the intersection of two of the fastest-growing sectors in the world, crypto, and sustainability. We expect enterprise demand to be very, very strong.
Sean, thanks for coming into our community, and taking the time to answer our questions. Do you have any final words for us? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS
Please follow us on www.impactscope.com — our sister site www.impactscope.io will be launching soon. Keep an eye out for it. Please follow us on Twitter and Telegram too for project updates. It was great speaking to you all. — Sean from Impact Scope