CryptoGPT announced that it has secured a $10 million strategic investment from DWF Labs, a market maker focused on Asian markets. This news triggered an 11% spike in the GPT token at $0.07478 at press time.
The deal puts a $250 million value on the company. The funding will be used to develop AI Web3 technology, particularly in Asian markets.
What is CryptoGPT?
CryptoGPT is an Ethereum-based layer 2 using zkRollup technology to achieve scaling. The company hopes to end the dominance of big tech, allowing "you own the monetization of your AI data".
"Turn every task in your daily life into a source of income."
zkRollup technology refers to an off-chain method that relies on one party proving to another that something is true. Apart from the statement of truth, no additional information has been disclosed.
Instead of displaying each individual transaction, truth statements are grouped together, compressing data and decreasing load capacity.
CryptoGPT aims to target retail users by allowing them to earn by sharing their data. With the proliferation of AI, the company predicts that data will become even more valuable in the future.
“AI requires advanced data to train more sophisticated algorithms – companies that provide high-quality data will reap the benefits of this increased demand.”
Expansion in Asia
The company said the timing of a strategic expansion into Asia is ideal, given Hong Kong's evolving policy towards digital assets.
"Hong Kong is becoming the gateway to expanding crypto liquidity, opening up to the Chinese market."
Lately has seen a flurry of pro-crypto announcements coming from the city-state. This includes the local government spending $50 million to foster Web3 development in the region and introducing a Virtual Asset Service Provider (VASP) licensing regime.
Eight crypto firms are expected to obtain a VASP license by the end of this year.
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