Zero-knowledge (ZK) layer 2 blockchain CryptoGPT has leveraged the recent surge in interest in artificial intelligence (AI) to raise $10 million in funding. According to a statement, the Series A investment round led by market maker DWF Labs, which emerged as one of the most active investors during the crypto bear market, has valued the AI-focused blockchain at $250 million.
CryptoGPT has recently released its artificial intelligence assistant “Alex”. It is also developing a data-to-AI engine and its own ZK rollup layer 2 blockchain that functions to collect, encrypt and transport data for commercial applications. Instead of applying ZK technology to payments, CryptoGPT is integrating it into private data transfers, CryptoGPT said on Monday. Dejan Erja, co-founder and chief technology officer of the AI-focused blockchain, stated that the proceeds of the new funding will be used to grow the developer team globally and develop its regional presence in Asian markets.
Thanks to the mainstream success of the ChatGPT chatbot, there has been a huge surge in interest in AI-driven cryptocurrencies since the beginning of the year. However, with the healthy gains in recent months being little more than short-term price increase from opportunistic traders behind this enthusiasm, there is also some doubt as to how long such tokens can live up to in the long run. According to data from CoinMarketCap, ChatGPT’s core token, GPT, which was released in early March this year, has a market cap of just over $12 million at the time of writing.