CryptoGPT has raised $10 million in funding in a Series A funding round. But the AI-focused platform is mired in controversy.
CryptoGPT, a blockchain platform with a Zero-knowledge (ZK) layer 2 and an AI focus, has raised $10 million in funding in a Series A round led by DWF Labs, giving it a valuation of $250 million. However, the project has raised eyebrows for several reasons.
The official Twitter account started up in February 2023. It then accumulated over 140,000 Twitter followers in 27 tweets. Furthermore, after having registered its domain name less than three months ago, the platform is already launching a token.
The project also recently launched its new chatbot, “Alex,” which tells you it is GPT-3 when asked. When BeInCrypto asked whether Alex was made by CryptoGPT, it said: “No, I was not made by CryptoGPT. I was created by OpenAI, a research organization dedicated to advancing artificial intelligence in a safe and beneficial way.”
CryptoGPT claims to be an AI-powered way for users to monetize the data they generate. Apparently, users have the option to allow CryptoGPT to collect some of their data, such as their preferences and behavior, while they use these apps. CryptoGPT also claims to use zero-knowledge-proof technology for data transfers between the user and commercial applications.
Experts Wary of AI Tokens
The recent success of ChatGPT has sparked a surge in interest in AI-focused cryptocurrencies, although there is some skepticism around their long-term viability. Other AI-focused cryptocurrencies like Fetch.ai (FET) and SingularityNET (AGIX) have seen huge gains this year. However, many experts agree their price is often not reflective of the technology behind them. Many buyers are simply looking for quick returns and joining the trend.
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