A $250 million valuation was utilized to attract $10 million in a Series A fundraising round for CryptoGPT, an Ethereum layer-2 solution focusing on AI development. DWF Labs, a multi-stage Web3 investment company and market maker for digital assets, took the lead in the fundraising round. Aiming to monetize user data across fitness, dating, gaming, and education by selling it to businesses to train their AI models, CryptoGPT employs ZK-Rollup technology to grow on Ethereum. Users that share their data may also win tokens.
The startup is creating a data-to-AI engine and just released its “Alex” Web3-focused AI assistant. However, several seasoned cryptocurrency users have expressed worries about the project, citing possible unlawful behaviors as well as inaccurate information about the leadership and investors. The co-founder of the cryptocurrency media website BlockWorks, Jason Yanowitz, has called CryptoGPT a “outright scam.”
DWF Labs’ backing will help CryptoGPT enter Asia despite the critiques. The initiative wants to establish itself as a regional leader in Web3 by capitalizing on Hong Kong’s stronger pro-crypto attitude. When comparing the situation of the cryptocurrency business to the early days of the internet, Hong Kong’s finance head recently said that it is the “right time” for the city to push for Web3.