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 Monday Twitter thread.
“New funding at a $250M valuation from DWF Labs positions GPT both financially and strategically with the most established layer-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 something is true, to achieve scaling.
The company hopes to earn 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 they use the app.
This information is then sold in a larger market where companies purchase data to train their artificial intelligence models. Users can also earn in exchange for sharing their data.
Just recently, the company rolled out 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 transfers data for commercial applications.
Meanwhile, CryptoGPT’s native token GPT jumped more than 10% on Monday on the news, before correcting its gains.
The token is currently trading at around $0.07, almost flat over the past day. 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 its token will also be listed on Bithumb, Korea’s largest fiat exchange.
CryptoGPT Eyes Asia Push Amid Improving Regulatory Environment
CryptoGPT noted that with support from DWF Labs, Asia’s biggest market maker, the company with “push deeper into Asia at the most strategic time.”
The project mentioned that its Asia expansion comes at a time when Hong Kong is adopting a more crypto-friendly stance in a bid to reclaim its position as a global crypto hub.
Just recently, Hong Kong’s finance chief 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 2022 crypto meltdown to the dot-com bubble burst in 2000, claiming that surviving market players focused on technological innovation, applications, and value creation.
“In the next stage, market participants need to develop blockchain technology more deeply, so that its characteristics and advantages of transparency, efficiency, security, disintermediation, de-platformization, and low cost can find wider application scenarios and solve more existing problems.”
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