Blockchain project CryptoGPT raises $10M at $250M valuation
CryptoGPT, a layer 2 blockchain utilizing zero-knowledge (ZK) technology, has secured $10 million in funding in a recent Series A round led by market maker DWF Labs,
Artificial Intelligence is taking over
The AI-focused blockchain has also garnered a valuation of $250 million, as per a statement released. CryptoGPT’s latest endeavors include the creation of “Alex”, a Web3-focused AI assistant, as well as the development of a ZK rollup layer 2 blockchain and a data-to-AI engine.
The data-to-AI engine is responsible for collecting, encrypting, and transferring data for commercial applications, while the ZK technology is being utilized for private data transfers.
According to Dejan Erja, co-founder and CTO of the AI-focused blockchain, CryptoGPT plans to utilize the funding to expand its developer team on a global scale, as well as increase its regional presence in Asian markets.
The primary objective of CryptoGPT is to enable users to monetize their data across various sectors, including fitness, dating, gaming, and education. Additionally, the blockchain aims to introduce non-fungible tokens (NFT) that store an owner’s activity data.
Piggybacking on the success of ChatGPT
The mainstream success of chatbot ChatGPT has spilled over into the crypto markets, as AI-focused cryptocurrencies have seen significant success since the beginning of the year. Despite this, several analysts remain skeptical regarding the long-term sustainability of such tokens, asserting that the impressive gains observed in recent months are likely the result of opportunistic traders capitalizing on the hype and represent little more than a short-term price pump.
CryptoGPT’s native token, $GPT, was released in early March of this year and presently boasts a market capitalization of slightly over $12 million. CoinGecko data highlights that Fetch.ai’s FET and SingularityNET’s AGIX are among the other AI-focused cryptocurrencies with higher market capitalizations.
Additionally, a new AI-based project called ChainGPT ($CGPT) also capitalized on the AI trend to conduct a very successful token sale.
A bright future ahead
DWF Labs, the market maker that spearheaded the Series A funding, has become one of the most active investors in the crypto bear market. The fresh infusion of funds will aid CryptoGPT in expanding its reach in the rapidly expanding Asian markets, where the blockchain intends to entice additional developers.
CryptoGPT claims that its ZK rollup layer 2 blockchain, as stated in the announcement, is more scalable than Ethereum’s mainnet, with higher-speed transaction throughput, lower gas fees, and smart contract support. Additionally, the blockchain’s data-to-AI engine encrypts data at the point of origin, which CryptoGPT believes improves data security during the transfer process.