CryptoGPT, a layer 2 blockchain utilizing zero-knowledge (ZK) technology, has capitalized on the current boom in artificial intelligence (AI) to secure $10 million in funding through a Series A round. DWF Labs, a market maker known for its active investments during bearish market conditions, led the funding round, resulting in a valuation of $250 million for the AI-focused blockchain platform, as stated in a statement.
CryptoGPT has recently launched “Alex,” an AI assistant that focuses on Web3 integration, while also continuing development on its ZK rollup layer 2 blockchain platform and a data-to-AI engine designed to gather, encrypt, and transfer data for use in commercial applications. CryptoGPT announced on Monday that it utilizes ZK technology not for payments, but rather for private data transfers.
The funding raised from the recent investment round will be used to expand the company’s development team across the globe and enhance its presence in Asian markets, as stated by Dejan Erja, co-founder and CTO of the AI-focused blockchain, in a statement. CryptoGPT’s primary objective is to enable users to profit from monetizing their data in various sectors, such as fitness, dating, gaming, and education. Additionally, the company intends to release non-fungible tokens (NFTs) capable of storing the owner’s activity data.
CryptoGPT and the Rising Demand for AI-Powered Projects
Since the beginning of the year, there has been a surge in enthusiasm for cryptocurrencies focused on AI, largely due to the mainstream popularity of the chatbot ChatGPT. Nonetheless, there remains some doubt regarding the long-term sustainability of such tokens, with some believing that the notable price increases they’ve experienced in recent months are merely a result of short-term hype-driven speculation by opportunistic traders.
CoinMarketCap data shows that as of now, the GPT token – created by CryptoGPT in early March – has a market capitalization of slightly above $12 million. Other notable AI-focused cryptocurrencies with higher market capitalizations include Fetch.ai (FET) and SingularityNET (AGIX), as per CoinGecko data. According to Dejan Erja, CryptoGPT was established in July 2022.
While some social media accounts and news articles had referred to Jamila Jelani as the founder and CEO of the project as recently as last month, her current position on the CryptoGPT website is listed as marketing personnel. Jelani clarified that third-party sources had quoted her as CEO, but she is actually responsible for marketing.
In contrast, Erja is the founder and CTO of CryptoGPT, although he is labeled as a co-founder in the current press release. Erja has stated that CryptoGPT intends to use DWF’s investment to expand its current development team of 22 individuals and enhance its presence in the Asian markets. Last month, CryptoGPT reportedly raised $3 million in a token round by way of a public sale through DAO Maker, as per Erja.
