AI-based blockchain CryptoGPT is now valued at $250 million, but critics are fearful it's merely a scam.
CryptoGPT, a zero-knowledge layer 2 blockchain, hit the valuation after raising $10 million in a Series A funding round led by market maker DWF Labs.
Its web3-focused AI assistant "Alex" was recently rolled out by the firm, which is touted as "the public library of the internet, powered by OpenAI models," according to CryptoGPT's website. "Ask any question, and it will find an answer."
Funding will go towards growing CryptoGPT's developer globally and build upon its Asian market presence.
Read more: This is How Web3 Leaders Are Using ChatGPT & AI
Its aim is to allow users to earn money by monetizing data across fitness, dating, gaming and education. There are also plans to roll out NFTs for users to store their data.
CryptoGPT's native token GPT was issued in March, and has a market cap of over $12 million.
As exciting as a ChatGPT-crypto hybrid may seem, critics are calling the project a scam. Blockworks founder Jason Yanowitz highlights how Jamila Jelani was listed as CryptoGPT's CEO and founder, but her title was later changed to "marketer," before being removed completely from the firm's website.
Yanowitz also questions whether CryptoGPT CTO Dejan Ejra even worked at Ripple Net, as he claimed. Art Bagdonas, who is listed as the company's ecosystem lead is equally as suspicious, according to Yanowitz.
Read more: Bitget "Exposed" as "Chinese Scammers", Starts $100M Asia Web3 Fund
The crypto figurehead also expresses concern about DWF's legitimacy and describes CryptoGPT's 2 million users as an "absurd claim."
He further argues that CryptoGPT's other token, DXP isn't a real token, and suggests that the company's 30-day refundable NFT is "just illegal."
Gut take: CryptoGPT is an outright scam— Yano 🟪 (@JasonYanowitz) April 10, 2023
I wouldn't touch it with a 10 foot pole 🧵 pic.twitter.com/ZnYVNQGuTd
Another Twitter user claimed that CryptoGPT's Alex is using OpenAI's API, which in doing so is an "outright scam."
CryptoGPT's own chatbot 'Alex' confirmed they're using @OpenAI's API.— Greg Osuri (@gregosuri) April 11, 2023
This is an outright scam. pic.twitter.com/4xxe3YvdwV
The world of Web3 can be quite a whirlwind. Whether it’s crypto news in Singapore, South East Asia or even across the globe, we understand how busy the industry is keeping you, so we kindly send out three newsletters each week:
- BlockBeat for a wrap-up of the week’s digital assets news
- Blockhead Brief for weekend happenings as well as what to look forward to in the week ahead
- Business Bulletin for macroeconomic updates and industry developments.
To avoid FOMO and access member-only features, click here to subscribe for FREE.