Numeraire

What is Numeraire (NMR)?

• Numeraire (NMR) is an ERC-20 token that powers Numerai

• , a hedge fund using AI for stock market investments.

• Used for staking on predictive models in weekly tournaments.

• Rewards for accuracy, penalties for incorrect predictions.

Tokenomics

• Total supply capped at 11 million, reduced from 21 million.

• Staking mechanism for tournament predictions.

• Incentivises high-quality model creation.

Market Data

As of today #{today’s date}, the price of Numeraire is ₹840.05 INR or 9.78 USD, with a 24-hour trading volume of 9181080.17 USD. The market capitalisation for Numeraire is 76006487.65USD. The circulating supply is 8061179.53 Numeraire, with the total supply also being 10672144.07 Numeraire.

Pros and Cons

Pros:

• Incentivises the creation of high-quality predictive models.

• Aligns participants’ interests with the platform’s success.

• Provides a unique approach to hedge fund management using AI and crowdsourced predictions.

:

• Exposure to the volatility of the cryptocurrency market.

• Dependence on the quality and accuracy of user-submitted models.

• Potential regulatory challenges associated with the use of cryptocurrencies in financial markets.

Why Should You Invest in the Coin?

• Potential of crowdsourced AI in hedge fund management.

• Comfort with cryptocurrency investment risks.

USP of the Coin

• Decentralised, crowdsourced hedge fund management.

• Leverages global data scientist intelligence for market predictions.

Problem the Coin is Solving

• NMR addresses stock-market capital allocation inefficiencies.

• It creates a transparent platform for accurate predictive model contributions.

Founder and Team Background

• Numeraire was founded by Richard Craib.

• Team with expertise in data science, machine learning, and finance.

ICO Price

• No traditional ICO; 1 million NMR distributed to 12,000 active data scientists.

Risks Associated in Investing in the Coin

• Market volatility, regulatory uncertainty.

• Reliance on model accuracy and potential investment losses.

Whitepaper Insights

The Numerai whitepaper outlines the creation of a new kind of hedge fund built on the Ethereum blockchain, powered by a global network of data scientists. The platform uses the Numeraire (NMR) token to incentivise the creation and submission of machine learning models that predict stock market movements. Data scientists stake NMR on their models, and if their predictions are accurate, they earn more NMR; if not, their staked NMR is burned.

The whitepaper discusses the tokenomics of NMR, explaining that the token supply is capped and that tokens are minted weekly to reward successful model submissions. The burning mechanism for incorrect predictions helps regulate the token supply and ensures that only high-quality models are rewarded.

Numerai’s platform is designed to be a decentralised, transparent, and trustless system. Data scientists submit predictions without seeing the underlying data, which is encrypted to prevent overfitting and to ensure that models are based on genuine predictive power rather than memorisation of data.

The whitepaper also delves into the platform's governance, where NMR holders can vote on proposals affecting the ecosystem. This includes decisions on reward structures, protocol upgrades, and other improvements.

Numerai’s approach aims to aggregate the intelligence of data scientists worldwide to create a meta-model that outperforms traditional hedge funds. The platform’s goal is to revolutionise the financial sector by leveraging the power of machine learning and blockchain technology.

The whitepaper emphasises the importance of the “skin in the game” philosophy, where participants are financially incentivised to contribute accurate predictions. This aligns the interests of data scientists with the hedge fund's success, creating a symbiotic relationship between the platform and its contributors.

In summary, the Numerai whitepaper presents a vision for a new kind of hedge fund that harnesses the collective intelligence of a global network of data scientists. Using the NMR token to incentivise accurate predictions and penalise incorrect ones, Numerai aims to create a powerful and efficient system for capital allocation in the stock market. The platform’s decentralised nature and use of blockchain technology offer a level of transparency and security that is novel in the world of finance.