Numeraire (NMR) is the native cryptocurrency of the Numerai project, a blockchain-based platform that leverages machine learning technology to experiment and create effective prediction models for the stock market. Numerai aims to decentralize the data science field and allow developers to compete in creating effective machine learning prediction models.
In addition to creating prediction models, Numerai also functions as a hedge fund. Users can trade equities on the Ethereum blockchain based on predictions made by a global network of data scientists using artificial intelligence.
The Numerai project combines blockchain technology, machine learning, cryptography, and data science to predict the stock market and enable users to trade equities based on those predictions. Union Square Ventures and the co-founders of Renaissance and Coinbase back the initiative.
The NMR cryptocurrency, an ERC-20 token issued on the Ethereum blockchain, powers the Numerai platform. Developers can stake NMR to participate in Numerai's tournament, submitting their prediction models and competing for rewards.
Users can build machine learning models on abstract financial data to predict the stock market using the Numerai platform. The crowd-sourced hedge fund utilizes machine learning technology for stock market predictions.
Numerai creates a new weekly dataset with abstract financial data without direct connection to the real world. This abstract data is designed to be difficult for humans to interpret, which means that traditional approaches to investing are less effective. The platform’s users then build ML models that attempt to predict the outcome of the stock market based on this data.
Numerai relies on its participants, called "numerators," to submit their models to the platform. Numerai then combines these models into a meta-model for trading the stock market. The numerators are rewarded with cryptocurrency if their models are successful, and the currency can be used to make future trades on the platform.
The platform’s users can start by training a LightGBM model and using Weights & Biases to do a hyperparameter sweep. They can define the sweep configuration and conduct a grid search over some of the essential hyperparameters for LightGBM.
Numerai was created by South African technologist Richard Craib and launched in December 2015 as an AI-powered crowd-sourced hedge fund. Numerai announced the NMR token in February 2017 to gamify participation in the platform’s tournaments.
In March 2019, Numerai raised $11 million in funding via an ICO to launch its project Erasure. Placeholder and Paradigm led the fundraising round.
The project introduced the idea of creating predictive models with the help of a network of data scientists in the Numerai Masterplan in October 2017. Numerai’s new GraphQL API written in Elixir was released in the same month.
Numerai Signals, a new offering from Numerai, went live in October 2020 after a few weeks in beta. Numerai Signals is a market-neutral long/short equity strategy designed to generate alpha on US equities using traditional financial data and alternative data sources.
Numeraire is a unique cryptocurrency with significant potential as an investment opportunity. As the native token of an AI-powered, blockchain-based hedge fund, its utility makes it a valuable crypto to invest in and hold.
The NMR price could rise as interest in using the Numerai platform rises. The increased activity levels could boost the demand for Numeraire token and support its value in the market.
The Numeraire price could also benefit from a bullish mood in the crypto market, especially toward AI tokens. During such times, the risk appetite among crypto traders and investors is high, encouraging buying activity in the market that can boost the NMR price statistics.
Considering the highly volatile nature of the crypto market, it is impossible to provide an accurate NMR crypto price prediction over any duration. However, certain fundamentals influence the price action in the Numeraire token, such as:
The demand for NMR crypto rises when more users participate in the Numerai platform. The uptick in demand could drive an uptrend in the NMR to USD price in the market.
Factors such as news and events related to Numerai, its technology, or its ecosystem can also impact the Numeraire price in the short term. The rollout of new features or announcement of new investments into the project also bolsters investor confidence and increases Numeraire crypto’s value.
The overall market sentiment toward cryptocurrencies can also impact the price of NMR token. A bullish or risk-on mood among crypto traders can support the Numeraire crypto price. However, bearish or risk-averse sentiment in global financial markets could cause selloffs that weaken the price of NMR.
NMR is the native crypto asset of the Numerai platform and serves the following purposes:
Data scientists use $NMR to submit their predictions to the Numerai platform. It is also used as a currency to trade equities on the Ethereum network using artificial intelligence and predictions made by a global network of data scientists.
Data scientists stake their NMR tokens on their predictions, and the more accurate their predictions are, the more NMR tokens they can win as a reward. This incentives data scientists to submit their best predictions and encourages accuracy in the data science tournament.
You can trade Numeraire for various crypto assets to take advantage of changing market circumstances and volatility. Buy or sell NMR tokens against other digital currencies, or hold Numeraire crypto if you believe in the long-term prospects of Numerai. Please exercise caution when making investment decisions and perform comprehensive research on the project, its underlying principles, and its market potential.
You can use NMR tokens to make your predictions official on the Numerai platform. Here’s how to stake Numeraire on Numerai:
1. Sign up for an account on Numerai if you are a new user.
2. Download the dataset containing training data and example scripts.
3. Build your own data model and submit your predictions on the platform.
4. Stake $NMR on your presented models to earn/burn tokens based on performance.
5. You can submit your models weekly and grow your NMR holdings over time.
6. The more tokens you stake, the higher your risk/reward ratio on Numerai.
The maximum supply of Numeraire is fixed at 11 million. As of April 2023, the NMR circulating supply is just over 6.2 million.
The circulating supply of Numeraire changes based on several factors, including investor sentiment, market conditions, and adoption rates. The level of staking activity could also influence changes in the NMR supply.