AI-Blockchain CryptoGPT Secures $10M in Funding, Valued at $250M – Bull Market Back?
CryptoGPT, an Ethereum layer-2 solution dedicated to AI development, has raised $10 million in funding at a valuation of $250 million.
The Series A round was led by DWF Labs, a leading digital asset market maker and multi-stage web3 investment firm, the company said in a Twitter thread on Monday.
“New funding valued at $250 million from DWF Labs positions GPT both financially and strategically with the most established tier-2 developments in web3,” the company said.
CryptoGPT is an Ethereum-based layer 2 that uses zkRollup technology, an off-chain method that relies on one party proving to another that something is true, to achieve scaling.
The company hopes to make money by monetizing users’ data across fitness, dating, gaming and education.
More specifically, users have the option to allow CryptoGPT to collect some of their data, such as their preferences and behavior, while using the App.
This information is then sold in a larger market where companies buy data to train their artificial intelligence models. Users can also earn in exchange for sharing their data.
Recently, the company launched its Web3-focused AI assistant “Alex” and is developing its ZK rollup layer 2 blockchain and a data-to-AI engine, which collects, encrypts and transmits data for commercial applications.
Meanwhile, CryptoGPT’s native token GPT jumped more than 10% on Monday on the news, before correcting gains.
The token is currently trading at around $0.07, almost flat in the last 24 hours. Furthermore, it has a market cap of just over $20 million and a 24-hour trading volume of around $6 million at the time of writing.
The GPT token is currently available on some major exchanges, including Bitfinex, BingX, Bybit and Bitget. On Monday, the company revealed that the token will also be listed on Bithumb, Korea’s largest fiat exchange.
CryptoGPT Eyes Asia Push Amid Improved Regulatory Environment
CryptoGPT noted that with the support of DWF Labs, Asia’s largest market player, the company has “pushed deeper into Asia at the most strategic time.”
The project mentioned that the Asia expansion comes at a time when Hong Kong is taking a more crypto-friendly stance in an effort to regain its position as a global crypto hub.
Recently, Hong Kong’s chief financial officer stated in a blog post that it is the “right time” for the city to push for Web3 despite the recent market volatility.
He claimed that the crypto industry is going through the same process as the Internet in the early 2000s. He compared the crypto meltdown of 2022 to the dot-com bubble that burst in 2000, arguing that surviving market players focused on technological innovation, applications and value creation.
“In the next step, market participants need to develop blockchain technology more deeply, so that its characteristics and advantages of transparency, efficiency, security, disintermediation, de-platforming and low cost can find wider application scenarios and solve more existing problems.”
