Numerai is built on Ethereum and serves as a platform for developers and data scientists to test and develop machine learning models with enhanced dependability. Its primary aim is to decentralize the data science sector, allowing developers to compete in building efficient machine learning models for predictions.
Established in San Francisco at the end of 2015, Numerai claims it was the first hedge fund to introduce a cryptocurrency in the market. Unlike typical hedge funds, Numerai relies heavily on the data and forecasts provided by tournament participants to engage in stock market trading. They assert they are pioneering in the extensive use of machine learning within their investment strategy.
Who Established Numeraire?
Richard Craib is the mastermind and CEO behind Numerai. He completed his education at the University of Cape Town in 2008 and later earned another bachelor's degree from Cornell University, spending an additional year at UC Berkeley. His career took off with the founding of Numerai, which eventually led to him being recognized as one of Forbes' 30 under 30.
Richard Craib is often acknowledged for his groundbreaking approach to managing hedge funds and his forward-thinking use of artificial intelligence in predicting stock prices. Moreover, Numerai is responsible for organizing one of the world's largest data science competitions.
What Distinguishes Numeraire?
Numerai and its token, Numeraire (NMR), stand out due to their distinctive inception. They are reportedly the first cryptocurrency created and introduced by a hedge fund. A significant advantage of the NMR token is its role as a reward for data scientists whose models excel in Numerai’s tournaments. Consequently, as more participants join and the competition intensifies, the token's value is likely to increase.
Additionally, the models developed for the tournament offer Numerai a capability to trade actively in the stock market, based on insights from these projects. This groundbreaking method of engaging with stock trading positions Numerai as one of the rare hedge funds that extensively utilize AI-driven data predictions.
How Many Numeraire (NMR) Tokens Are in Circulation?
Numeraire's total supply is capped at 11 million tokens. Initially, the supply limit for Numeraire was set at 21 million tokens, but in 2019, the platform decided to reduce this maximum significantly.
In a press announcement from 2018, Numerai revealed that three million NMR tokens will remain locked until the year 2028 and will be distributed as rewards to tournament participants. The Numeraire token bypassed an initial coin offering (ICO), choosing instead to distribute 1 million NMR tokens among 12,000 of the most active users on the platform.
NMR tokens are also subject to a weekly burning process, where participants who submit unsuccessful models and predictions lose their stakes.
What Secures the Numeraire Network?
As an ERC-20 token, Numeraire (NMR) is protected by the Ethereum blockchain's proof-of-stake (PoS) consensus mechanism. Validators and block creators are chosen based on the NMR tokens they have staked, granting them participation in the network. ERC-20 tokens are increasingly favored due to their versatility, while the Ethereum blockchain continues to provide robust security akin to blockchains using other security protocols.
Contrary to the popular proof-of-work (PoW) consensus, PoS does not demand extensive electrical or computational power, making it a more energy-efficient and scalable solution suitable for various applications.
Where Is Numeraire (NMR) Available for Purchase?
As Numerai gains traction with improved hedge fund performance and increased participation in its weekly tournament, more exchanges are offering NMR for trading.
Coinbase Pro reported the highest trading volume for NMR/USD as of February 2021. Other significant exchanges with considerable trading activity include Binance, DigiFinex, and Bilaxy.
Find more information about purchasing cryptocurrency here.
