Good day everyone,

I hope you are all well and having an excellent week, welcome to CryptoGod-1’s blog on all things crypto. By now we are all well aware of the powerful AI tools of ChatGPT, but a new crypto venture named CryptoGPT has just secured $10 Million in Funding as it ventures into the crypto space as an Ethereum layer-2 solution dedicated to AI development.

What is CryptoGPT?

CryptoGPT is an AO-focused blockchain company which works as an Ethereum-based layer 2 that uses ZK-Rollup technology. This means that it basically relies on an off chain method of one party proving to another that something is true. This is done to achieve scaling. The aim of the company is to capitalise on the growing interest in artificial intelligence technology, and in doing so earn money via monetizing users' data from fitness, dating, gaming, and even education.

This is done through its Web3 focused assistant known as 'Alex.' This assistant will be integral to the development of the zero-knowledge (ZK) rollup layer 2 blockchain and data-to-AI engine. Through using this technology they will be able to gather, encrypt, and transfer data for various commercial applications. 

The information gathered from users, who will have the option to allow CryptoGPT to collect some of their data while using the app, will then be sold in the larger market to companies who are looking for data to help train their artificial intelligence models. Users will earn in exchange for their data, likely in the form of the CryptoGPT native token.

Funding and Valuation

The series A round of $10 million in funding was led by DWF labs, a leading digital asset market maker, along with a multi-stage Web3 investment firm. This was announced by the company on Twitter, and the valuation means the company is now valued at a staggering $250 million. 

The news led to the native token of CryptoGPT, known as GPT and issued in early March, to rise in price by around 10% once the news was announced. The token did correct itself and see its value go back to its more set level of around $0.07, which has remained quite consistent since. The token is still quite small in terms of its market cap, sitting at just over $20 million, and has a 24-hour trading volume of around $6 million or so.

The token is available on some of the major exchanges, although not all of them as of yet. It can be purchased or traded on Bitfinex, BingX, Bybit, and Bitget, and will also soon be listed on Bithumb, Korea's largest fiat exchange. 

Red Flags

There have been some veterans within the crypto space who were quick to call out the red flags they have noticed with CryptoGPT. These include misleading information within the project about its leadership and key personnel, along with claims surrounding dubious investors and illegal practices.

The crypto media website known as BlockWorks has called out the project and claimed it was a scam, with co-founder Jason Yanowitz pointing to the suspicious activity surrounding the project. According to reports the job titles of people have changed on the website, including one Jamila Jelani, who was initially listed as the CEO / Co-founder, and has since been changed to marketer. Since then she has been totally removed from the website. The LinkedIn profile associated with her was also only created in the last month, raising further questions about her credability.

Another member of the team, CTO Dejan Erja, also claims he previously worked at RippleNet. However, there is no evidence to support these claims.

Other users have also claimed the PR around CryptoGPT is fake, and that users should not fall for it. Their rapid growth of users is questionable, while some are also pointing to the fact they have just made use of ChatGPT and are claiming it is their own version of an AI model. The use of OpenAI’s API does not make CryptoGPT its own legitimate platform and raises even more questions about what is really going on at the company.

As you can see in the tweet below, a user asked 'Alex' whether or not CryptoGPT was in fact a scam, and well, the answer was probably not what the developers were hoping for.

Interesting times for sure with the growth of AI taking the market by storm. However, all might not be as it seems with an abundance of new AI based projects bound to appear in the coming weeks and months. It is important to be aware of what one is really investing in, and doing research always helps. I am not saying CryptoGPT is a scam, all I am saying is there have been a lot of red flags around it so far. Only time will tell where it goes from here.

Have a great day.

Peace. CryptoGod-1.

** I first posted this story on Medium on the 12th of April 2023, which can be found here: https://medium.com/@1r3n9project/b514e22fc543?sk=6c9ca1f9ba89703d1e657b22d5ea696e **

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