CryptoGPT, an Ethereum layer-2 solution dedicated to AI development, has raised $10M in funding at a $250M valuation.
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.
“The new funding from DWF Labs at a $250 million valuation positions GPT both financially and strategically with the most established layer-2 development in Web3,” the company said.
CryptoGPT is an Ethereum-based Layer 2 that uses zkRollup technology, an off-chain method that achieves scaling by relying on one party proving something to the other.
The company hopes to earn money by monetizing users’ data in the fields of fitness, dating, gaming, and education.
More specifically, users have the option to allow Crypto GPT to collect some of their data, such as their preferences and behavior, while using the app.
This information is then sold to a larger market where companies buy the data to train their artificial intelligence models. Users can also earn in return for sharing their data.
More 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 that collects, encrypts and transfers data for commercial applications. does.
Meanwhile, CryptoGPT’s native token GPT jumped more than 10% on the news on Monday before correcting its gains.
The coin is currently trading at around $0.07, almost flat over the past day. Furthermore, it has a market capitalization of over $20 million at the time of writing and a 24-hour trading volume of around $6 million.
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 amid improving regulatory environment
CryptoGPT said that with the backing of DWF Labs, Asia’s largest market maker, the company “reaches deeper into Asia at the most strategic time.”
The project noted that its Asia expansion comes at a time when Hong Kong is adopting a more crypto-friendly stance to reclaim its status as a global crypto hub.
More recently, Hong Kong’s finance chief said in a blog post that it was “the right time” for the city to push Web3 despite recent market volatility.
He claimed that the crypto industry is going through a process similar to the Internet in the early 2000s. He compared the 2022 crypto meltdown to the dot-com bubble bursting in 2000, claiming that the surviving market players focus on technological innovation, applications, and value creation.
“In the next phase, market participants need to develop blockchain technology more deeply, so that its characteristics and advantages of transparency, efficiency, security, non-intermediation, de-platforming and low cost are explored to a wider range of application scenarios. to go and solve more current problems.”