To some of you who may have never heard about Numeraire, it is a kind of hedge fund built by a network of data scientists. But what does that mean? Isn’t every hedge fund using great scientists who conduct testing and create algorithms to outperform the market? Then why is the Numeraire being talked about in a world which already has other cryptocurrencies? Well! This is one of the most, if not the most, interesting crypto you should know about.

The Numeraire price today is $12.54. Let’s find out how much Numeraire will be worth in the future by exploring Numeraire Price Prediction for the upcoming years.

Numeraire Overview

Cryptocurrency Numeraire
Ticker Symbol NMR
Price $11.5
Price Change 24H -7.67%
Price Change 7D -13.58%
Market Cap $68,156,263
Circulating Supply 5,888,503.64 NMR
Trading Volume $8,872,721
All-Time High $168.49
All-Time Low $1.93
Numeraire ROI 66.95%

About Numeraire

The Medallion fund is known by many in the stock market to be one of the best funds out there, returning 66% annually since inception. Jim Simons, the founder of Renaissance Technologies, was a mathematician; he created one of the best funds using mathematical models and algorithms and became a billionaire. Numeraire was founded in San Francisco in 2015 by Richard Craib, who created the platform Numeraire.

To simplify what Numeraire crypto is, it is easy to think of it as software that acts like a hedge fund that enables the user to trade stocks on the Ethereum Blockchain. By providing incentives using artificial intelligence, information science, and machine learning to predict the market and allow the user to trade.

The Numeraire ecosystem is built on the Erasure protocol, the new addition to its architecture, and uses it to provide incentives to the user who is staking his NMR. If the user chooses the correct forecast model, the protocol rewards the user with NMR tokens. If the user stakes their NMR on the wrong forecast model, Erasure destroys their staked NMR crypto. The software acts as an AI aggregator called the “Meta Model” and uses algorithmic trading.

Using all of the submitted prediction models on the platform, the Numerai acts as a hedge fund and trades equities based on the models. Trades are executed in the stock market, and the creators of successful forecast models are rewarded with the NMR crypto.

The native currency of Numeraire is its NMR tokens, and it is minted and destroyed continuously, but its total supply is limited to 11 million NMR. This NMR is the core of the Numeraire platform used for staking and rewarding the user.

Features of Numeraire

The Numeraire has two apps for its users. Depending on their trading styles, a user can select which one is more suited to him.

Numerai Tournament: It is a weekly tournament where a user submits his market forecast and wagers his NMR tokens by staking. It is difficult to signal because it consists of weekly market prediction, which its scientists submit. Users can then stake their NMR on the forecast they think is right. If the projections are correct, rewards will be paid out in NMR. If not, the NMR staked by the user will be destroyed. The forecast is rated by accuracy, while payouts are made every four weeks.

Numerai Signal: It is a channel for submitting users’ prediction models with their market techniques that promote a particular stock or trading style. The signal incentivizes the user with NMR rewards for submitting stock market forecasts. In general, a user sends a signal that includes a ticker and numeric information for stocks supported by Numerai. The algorithm decides whether the prediction was correct and if the user should be rewarded or have their stakes wiped out based on the outcome.

There are a few reasons why Numeraire has captured the market interest of its user. For starters, it is the first blockchain project, which is developed by a hedge fund company. It targets scientists to create better forecast models and rewards them generously by creating its tournaments. Moreover, the projects submitted on Numeraire enable the hedge funds to take part in the stock market by trading, using the results derived from the tournament it hosts. This makes Numerai a big firm willing to stake real money in the real world based on the results from its Numeraire platform.

The Numerai conducts the world’s largest stock market tournaments for data scientists. Its encrypted data models for stock market predictions first came to light in 2015. Every week, the Numerai site releases a new encrypted set of financial information. Anyone can download this information, and scientists can build a predictive model around it. The information is provided in CSV format and contains training set data. It also provides tournament information of other participants, which a user can use to train their information models further to create better forecast and compete with others.

The information sets published by Numerai are encrypted to preserve the integrity and structure of the underlying stock market information. Thus, it can be used for machine learning and creating predictions without revealing the specific nature of the problem that is being solved. Upon submission of prediction models by scientists, the Numerai assesses the forecasts using its own validation tests and algorithms and rewards the successful results.

By doing this, Numerai is creating a complex mathematical problem that can be worked on without having to know about the details of the stock market. Although the results submitted by the user contribute to the growth of Numerai’s meta-model, the company still cannot reverse engineer the participants’ models. All parties involved can keep their models secret while minimizing the redundancy of operations for the development of their forecast.

Numerai has already paid out millions of dollars in incentives to increase visibility in the data science community. By rewarding scientists, who come up with the most unique and accurate market signal, Numerai has given new life to the data science community by collectively working towards the goal of creating a great model to generate superior returns.