3 - 5 minute read
Zero-knowledge (ZK) layer 2 blockchain CryptoGPT has managed to raise $10 million in funding by taking advantage of the current hype surrounding artificial intelligence (AI). The Series A round was led by market maker DWF Labs, which has been one of the most active investors during the crypto bear market, and it gave the blockchain a $250 million valuation.
CryptoGPT has recently rolled out an AI assistant “Alex” and is developing its ZK rollup layer 2 blockchain and a data-to-AI engine, which encrypts and transfers data for commercial applications.
According to the Co-founder and CTO of the AI-focused blockchain, Dejan Erja, the funds raised will be used to grow the developer team globally and expand its regional presence in the Asian markets. The new funding reflects the growing interest around AI-focused cryptocurrencies, which have seen healthy gains in recent months.
The aim of CryptoGPT is to allow users to monetize their data across several sectors, including fitness, dating, gaming and education. The company also plans to introduce non-fungible tokens (NFTs) that will store the owner’s activity data. Instead of using ZK technology for payments, CryptoGPT applies it to private data transfers.
CryptoGPT’s native token GPT, issued in early March this year, has a market cap of just over $12 million, according to CoinMarketCap. Other larger market-cap peers in the AI-focused crypto space include Fetch.ai and SingularityNET.
The emergence of CryptoGPT and its recent funding raise highlights the rising interest and growth of AI-focused blockchains in the market. However, the longer-term viability of such tokens still raises concerns among some traders.
AI-Focused Blockchains Gaining Traction
Since the start of the year, AI-focused cryptocurrencies have seen a surge in interest, thanks to the mainstream success of the chatbot ChatGPT. Tokens such as Fetch.ai and SingularityNET are also gaining popularity in the AI-focused crypto space.
The emergence of CryptoGPT and its recent funding raise further highlights the growth of AI-focused blockchains in the market. The blockchain is developing an AI-powered data-to-AI engine and has created an AI assistant “Alex.” Its ZK layer 2 blockchain allows for private data transfers instead of payments, and it aims to allow users to monetize their data across several sectors.
Short-Term Price Pump or Long-Term Viability?
Despite the healthy gains enjoyed by AI-focused tokens in recent months, some traders remain skeptical about their long-term viability. The chatbot ChatGPT’s native token GPT has a market cap of just over $12 million at the time of writing, and there is concern that these tokens’ recent gains may just be a short-term price pump by opportunistic traders on the back of the hype.
The emergence of CryptoGPT and the recent funding raise highlight the rise of AI-focused blockchains in the market. However, traders should remain cautious about the long-term viability of such tokens and should conduct thorough research before investing.