Article Summary, Automatically Generated By AI
About Numeraire
Key Points:
- Founded in 2015 in San Francisco
- First hedge fund to launch a cryptocurrency
- Uses machine learning for stock price prediction
- Maximum supply of NMR tokens: 11,000,000
- ERC-20 token secured by Ethereum proof-of-stake (PoS) consensus mechanism
- Available on exchanges: Coinbase Pro, Binance, DigiFinex, Bilaxy
Numbers and Figures:
- 2008: Year Richard Craib graduated from the University of Cape Town
- 2015: Year Numerai was founded
About Numeraire: A Pioneering AI-Driven Hedge Fund
Introducing Numeraire (NMR): A Pioneering Cryptocurrency
Numerai is an Ethereum-based platform that empowers developers and data scientists to craft and refine machine learning models with enhanced reliability. By fostering a decentralized approach to data science, the platform’s primary objective is to facilitate a competitive environment where developers can vie to create the most effective machine learning prediction models.
Established in late 2015 in San Francisco, Numerai proudly asserts its position as the pioneering hedge fund to introduce a cryptocurrency to the market. Diverging from traditional hedge funds, Numerai leverages the data and predictions generated by tournament participants to inform its stock market engagements. Notably, the fund boasts being the first to heavily incorporate machine learning into its investment strategy.
The Visionaries Behind Numeraire: Meet the Founders
Richard Craib, the visionary founder and CEO of Numerai, boasts an impressive academic pedigree. He holds a degree from the University of Cape Town, which he earned in 2008, and later augmented with a second bachelor’s degree from Cornell University. Additionally, he spent a formative year at UC Berkeley. His professional journey, which began with the inception of Numerai, has propelled him to esteemed heights, earning him a coveted spot as a Forbes 30 under 30 designee.
Richard Craib is frequently acclaimed for his pioneering approach to hedge fund management, which has been revolutionized by his bold reliance on artificial intelligence for stock price prediction. Moreover, Numerai has successfully orchestrated one of the largest global data science tournaments, further solidifying its reputation in the industry.
Unveiling the Unparalleled Attributes of Numeraire
Numerai and its native token, Numeraire, boast a singular concept underlying their creation. Notably, it is reportedly the inaugural cryptocurrency to be conceived and launched by a hedge fund. One of the primary advantages of the NMR token lies in its unique distribution mechanism, where it is awarded to data scientists whose models demonstrate exceptional performance in the Numerai tournament. Consequently, the token’s value appreciates as more participants enter the competition, fostering a dynamic of healthy rivalry.
Beyond that, the models competing in the tournament enable Numerai to actively engage in stock market trading, informed by the insights gleaned from participating projects. This pioneering approach to stock trading distinguishes Numerai as one of the select few hedge funds that substantially rely on AI-driven predictive data.
The Circulating Supply of Numeraire (NMR) Coins: An Overview
The maximum supply of NMR tokens is capped at 11,000,000. Initially, the supply cap for Numeraire was set at 21 million tokens, but in 2019, the platform made a significant reduction, slashing the maximum by more than half.
In a 2018 press release, Numerai disclosed that a staggering three million NMR tokens would remain locked away until 2028, slated for release as a reward incentive to motivate tournament participants. Notably, the Numeraire token eschewed the traditional initial coin offering (ICO) route. Instead, Numerai opted to distribute 1 million NMR tokens among the 12,000 most active platform users, as determined by their impressive activity statistics.
NMR tokens are periodically incinerated on a weekly schedule, as tournament contenders who dare to venture forth with losing models and predictions consequently forfeit their stake in the competition.
The Numeraire Network’s Security Mechanisms: A Robust Framework
As an ERC-20 token, NMR is underpinned by the Ethereum proof-of-stake (PoS) consensus mechanism, which ensures that validators and block creators are selected based on the amount of NMR tokens they have staked. The popularity of ERC-20 tokens is on the rise, owing to their enhanced versatility in terms of utilization. Notwithstanding, the Ethereum blockchain affords the same level of security as blockchains operating with alternative security protocols, thereby providing a robust safeguard for NMR.
Unlike other prominent consensus mechanisms, such as proof-of-work (PoW), proof-of-stake (PoS) eschews the need for excessive electrical or computing power to mint new tokens, thereby rendering the consensus mechanism more scalable and adaptable to diverse use cases.
Acquiring Numeraire (NMR): A Comprehensive Guide to Exchanges and Marketplaces
Numeraire’s popularity is on the rise, driven by the hedge fund’s impressive performance and the increasing participation of data scientists in its weekly tournament. As a result, a growing number of exchanges now offer the NMR token, catering to the rising demand for trading.
As of February 2021, Coinbase Pro boasts the highest trading volume for NMR/USD, surpassing its competitors. Notably, other prominent exchanges, including Binance, DigiFinex, and Bilaxy, also exhibit substantial trading volumes.
Discover the ins and outs of purchasing cryptocurrency and explore the vast opportunities it has to offer
here
.
Associated Resources:
Delve into the world of Uniswap and discover its intricacies.
Delve into the world of Tellor.
Delve into the intricacies of blockchain networks.
Peruse the insightful articles on the CoinMarketCap blog.