What is Numeraire?

Numeraire is a cryptocurrency and platform created by the hedge fund company Numerai. It aims to leverage data science, artificial intelligence, machine learning, and cryptography to predict stock market behavior through crowdsourced machine learning models.

How Numeraire Works?

Numeraire operates through two main user models:

1. Numerai Tournament: Users build machine learning models based on provided datasets to predict stock market behavior.
2. Numerai Signals: Users create models using their own data sources.

Participants stake their models with NMR tokens and are rewarded based on their models' performance.

Where is NMR used

NMR, an ERC20 token on the Ethereum blockchain, is used for:

• Staking and burning during Numerai Tournaments and Signals
• As the native token in the Erasure Bay information marketplace
• Making predictions on the network
• Paying for services on the Numeraire network
• Trading on cryptocurrency exchanges

Numeraire Founders/History

Numerai was founded in 2015 by Richard Craib in San Francisco. The Numeraire token was launched in 2017 without conducting an ICO. Instead, one million tokens were distributed to data scientists based on their contributions to the platform.

Numeraire Tokenomics

Initially capped at 21 million tokens, the maximum supply was reduced to 11 million in July 2019. NMR is deflationary, with tokens being burned weekly through the Numerai tournament and the Erasure protocol.

How to earn NMR?

Users can earn NMR by:

1. Participating in Numerai Tournament or Signals
2. Building accurate machine learning models
3. staking NMR on their models

Rewards are based on model performance and contribution to the Meta Model.

What is Numeraire's competition?

Major competitors include QuantConnect, Quantiacs, and WorldQuant. Numeraire distinguishes itself through:

1. Use of smart contracts for trustless operations
2. Staking mechanism to incentivize quality predictions
3. Open participation model

Numeraire Investors

Numerai has raised $26.5 million through five funding rounds from 2016 to 2021. Key investors include Playfair Capital, Union Square Ventures, Paradigm, Placeholder, and Pantera Capital.

Numeraire SWOT Analysis

Strengths

• Combines AI and blockchain for stock market prediction
• Innovative crowdsourcing approach
• Well-designed incentive mechanism

Weaknesses

• High barrier to entry for non-experts
• Increasing competition in the market

Opportunities

• Potential applications in various financial sectors
• Integration with emerging DeFi ecosystem

Threats

• Possible abuse of the griefing mechanism in the Erasure protocol
• Potential for market flooding with spam predictions

Numeraire Roadmap

Numerai's long-term vision includes:

1. Monopolizing intelligence
2. Monopolizing data
3. Monopolizing money
4. Decentralizing the monopoly

Recent developments include the launch of Numerai Signals and implementation of True Contribution staking.

Numeraire News

• Ranked among top AI & Big Data Tokens by Market Capitalization in recent years
• Enabled Signals Staking on True Contribution, allowing for more accurate reward calculations

Where can I buy NMR?

NMR can be purchased on various cryptocurrency exchanges. It's recommended to research and choose a reputable platform for buying and trading NMR against other cryptocurrencies or fiat currencies.

Conclusion

Numeraire represents an innovative approach to hedge fund management by combining AI, blockchain technology, and crowdsourced intelligence. While it faces challenges such as high entry barriers and potential system abuse, its unique model and ongoing developments position it as a significant player in the intersection of AI and finance. As the platform continues to evolve, it will be interesting to see how Numeraire addresses its weaknesses and capitalizes on its strengths in the competitive landscape of quantitative finance.

FAQ

What does numeraire do?

Numeraire powers Numerai, a hedge fund using AI and crowdsourced data science to trade financial markets. It incentivizes data scientists to submit accurate predictions.