An Ethereum layer-2 solution called CryptoGPT has raised $10 million at a $250 million valuation in order to help the advancement of AI.
DWF Labs, a leading digital asset market maker, and multi-stage web3 investment firm led the Series A round, according to the company’s Twitter account on Monday.
The new funding from DWF Labs puts GPT in a strong financial and strategic position in web3 as it is one of the most established layer-2 development companies in the industry,” said the company.
CryptoGPT leverages zkRollup technology, an off-chain technique that depends on one party demonstrating that something is true to another, to achieve scaling.
By monetizing users’ data across fitness, dating, gaming, and education, the company hopes to earn money.
While using CryptoGPT, users are given the option to allow it to collect certain data, such as preferences and behavior.
Then, organizations that want to use this data to train their artificial intelligence models can buy it on a bigger market. In addition, users can receive compensation for sharing their data.
The business recently launched “Alex,” an AI assistant designed specifically for Web 3. Additionally, it is developing a data-to-AI engine that gathers, encrypts, and transfers data for commercial applications as well as the ZK rollup layer 2 Blockchain.
On Monday, GPT, the native token of CryptoGPT, increased by more than 10% in response to the news before reversing course.
The token is currently trading at around $0.07, nearly unchanged from the previous day. At the time of writing, it also had a market cap of little more than $20 million and a 24-hour trading volume of about $6 million.
The GPT token is now available on major exchanges such as Bitfinex, BingX, Bybit, and Bitget. The company announced on Monday that its token will be listed on Bithumb, Korea’s largest fiat exchange.
As the regulatory environment improves, CryptoGPT is eyeing an Asian push
With assistance from DWF Laboratories, the largest market maker in Asia, the company will “push deeper into Asia at the most strategic time,” according to CryptoGPT.
The initiative emphasized that its expansion into Asia coincides with Hong Kong’s decision to adopt a more pro-crypto stance in an effort to reclaim its status as a major global hub for the industry.
In spite of recent market turbulence, Hong Kong’s finance head recently wrote in a blog post that the city should push for Web3.
He asserted that the crypto industry is going through the same evolution as the Internet did in the early 2000s. He compared the 2022 crypto meltdown to the 2000 dot-com bubble burst, claiming that survivors focused on technological innovation, applications, and value creation.