As the market sees significant gains in AI projects, CryptoGPT (GPT) emerges as the latest contender. As of April 18, GPT was trading at $0.07, down nearly 50% from its all-time high of $0.1471, achieved on March 17.
Artificial intelligence (AI) is the buzzword of 2023, with AI tokens riding the wave of recent popularity.
Bithumb holds the throne as the dominant exchange for CryptoGPT coins, but KuCoin has swooped in to claim the second biggest market share despite it today’s launch, according to CoinMarketCap data.
This article delves into several dynamics to determine whether it’s a genuine investment opportunity or another scam.
CryptoGPT in a nutshell
CryptoGPT is an ethereum (ETH) layer 2 scaling solution that leverages zero-knowledge (ZK) rollups to increase throughput. The project aims to turn data into valuable assets for AI models and create value across multiple industries.
Users can earn GPT tokens by monetizing their data, while developers can benefit from the platform’s ecosystem and development tools.
The team behind CryptoGPT claims to have extensive experience in the crypto industry. However, some profiles lack verifiable backgrounds, raising red flags for potential investors.
Price action and market situation
CryptoGPT’s native token has experienced considerable gains since its launch, reflecting the demand for AI-related projects.
Comparing its performance to other cryptocurrencies in the market, GPT’s price has returned a return on investment (ROI) of 1,383% since its token launch in March, according to CoinMarketCap.
CryptoGPT even raised $10 million in funding through a Series A round led by market maker DWF Labs, giving the AI-focused blockchain a $250 million valuation.
The project recently rolled out a web3-focused AI assistant called “Alex” sparking controversies. and is developing its ZK rollup layer 2 blockchain and data-to-AI engine.
Potential risks and conclusion
Despite the promising technology and significant market gains, CryptoGPT has faced skepticism from users.
Red flags include unverifiable team backgrounds, dubious investor practices, and unrealistic user growth claims.
Meanwhile, most cryptocurrencies have a whitepaper outlining their project’s technical details, but CryptoGPT lacks one. This could worry investors as they typically want to know what they’re investing in.
Plus, CryptoGPT operates as a DAO, with no central authority or accountability. While this is common in crypto, it could be a red flag for some investors.
While AI is undoubtedly the future of the tech space, investors should proceed cautiously and conduct extensive research before investing in CryptoGPT or any similar cryptocurrency project.
