CryptoGPT raises $10M in funding for its AI-Focused blockchain platform, now valued at $250 million
CryptoGPT is the latest to join the ever-increasing list of tech companies embracing the global artificial intelligence (AI) race ignited by the popularity of ChatGPT.
Today, the Zero-knowledge (ZK) layer 2 blockchain CryptoGPT announced it has raised $10 million in funding to grow its AI-Focused blockchain platform. The Series A round, which now values the startup at a $250 million valuation, was led by market maker DWF Labs. In recent years, DWF Labs has emerged as one of the most active investors during the cryptocurrency bear market.
CryptoGPT recently rolled out Web3-focused AI assistant “Alex.” The startup is also building out its ZK rollup layer 2 blockchain and a data-to-AI engine, which collects, encrypts, and transfers data for commercial applications.
CryptoGPT was founded in July 2022 as ZK Layer-2 blockchain platform that lets you own the monetization of your AI data. The token, the website claims, wants to “turn every task of your daily life into a source of income.”
“Instead of applying ZK technology to payments, CryptoGPT integrates it for private data transfers,” CryptoGPT said in the statement on Monday. The proceeds of the new funding will be used to grow its developer team globally and build on its regional presence in the Asian markets, said Dejan Erja, co-founder and chief technology officer of the AI-focused blockchain.
CryptoGPT aims to enable users to earn money by monetizing their data in various fields, including fitness, dating, gaming, and education. Additionally, the platform plans to introduce non-fungible tokens (NFTs) that will store the user’s activity data.
The popularity of AI-focused cryptocurrencies has surged since the beginning of the year, in part due to the success of ChatGPT, the mainstream chatbot. However, some doubt the long-term sustainability of these tokens, believing that recent gains are a short-term price increase driven by opportunistic traders taking advantage of the hype.
According to CoinMarketCap data, CryptoGPT’s GPT token, launched in March 2023, currently has a market cap of just over $12 million. Other AI-focused crypto tokens with larger market caps include Fetch.ai’s FET and SingularityNET’s AGIX, according to CoinGecko data.