AI-Focused CryptoGPT Secures $10M Funding

Zero-knowledge (ZK) layer 2 blockchain CryptoGPT has secured $10 million in funding through a Series A round, led by market maker DWF Labs. The funding has enabled CryptoGPT to have a $250 million valuation, as per a statement released.

CryptoGPT Secures $10 Million in Funding and Plans to Expand

Dejan Erja, co-founder and CTO of CryptoGPT has stated that the funding will be used to expand the developer team globally and increase the company’s regional presence in Asian markets. CryptoGPT aims to monetize user data across various sectors, such as fitness, dating, gaming, and education. Furthermore, the company intends to roll out non-fungible tokens (NFTs) that store the owner’s activity data.

The success of chatbot ChatGPT has positively impacted the AI-focused cryptocurrency market. As a result, such cryptocurrencies have seen significant success since the start of the year. However, some analysts remain skeptical about the long-term sustainability of such tokens. They believe that the short-term price pumps are the result of opportunistic traders capitalizing on the hype.

$GPT Token and Its Position in the AI-focused Cryptocurrency Market

The team introduced the CryptoGPT’s native token, $GPT, in March of this year. It currently boasts a market capitalization of just over $12 million. According to CoinGecko data, Fetch.ai’s FET and SingularityNET’s AGIX are among the other AI-focused cryptocurrencies with higher market capitalizations. Another AI-based project, ChainGPT ($CGPT), also conducted a very successful token sale by capitalizing on the AI trend.

CryptoGPT claims that its ZK rollup layer 2 blockchain is more scalable than Ethereum’s mainnet, with higher-speed transaction throughput, lower gas fees, and smart contract support. Additionally, the company’s data-to-AI engine encrypts data at the point of origin, which CryptoGPT believes improves data security during the transfer process.

CryptoGPT’s Plans for NFTs

CryptoGPT integrates ZK technology for private data transfers instead of payments, as stated in the announcement. The blockchain company believes that its broad objective is to allow users to earn money by monetizing their data across multiple sectors. The NFTs will store the owner’s activity data.

The company also plans to roll out NFTs that store an owner’s activity data. The success of AI-focused cryptocurrencies since the start of the year is undeniable. However, some analysts remain skeptical about the long-term sustainability of such tokens, as they view the recent price pumps as short-term.

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