What is Numeraire (NMR)?
Numerai is a blockchain-based software that acts as a hedge fund and combines incentivization with artificial intelligence, machine learning, cryptography, and data science to predict the stock markets and allow users to trade equities. Numerai has two applications within its software, with each app supporting a different kind of trading.
Numerai Signals is where stock market strategies are uploaded to support a certain trading style or a specific stock. Numerai Tournament, on the other hand, allows users to upload trading algorithms as a weekly competition. Any network participant can bet on the most likely outcome based on users’ submissions.
Numeraire (NMR), the utility token for the platform, acts as the main payment method and is also used for staking on the outcomes based on market predictions. NMR is used as an incentive to reward participants in the Tournament app in a weekly selection. NMR powers the network as it helps execute all software operations. Numeraire (NMR) is an ERC-20 token since the software is hosted on the Ethereum network.
How Does Numeraire Work?
The Numerai software uses Erasure protocol to ensure that users are incentivized for staking their NMR. If a user stakes NMR on the correct outcome based on the chosen prediction model, the protocol rewards the user with NMR tokens. If the user stakes their NMR on the wrong outcome, Erasure protocol destroys their staked NMR.
The software itself operates as an AI aggregator called the “meta model”, and employs algorithmic trading. The system incorporates all submissions from users who can upload their prediction models to the platform. The Numerai software then acts as a hedge fund and trades equities based on the chosen prediction model. Trades are executed in the stock market, while all prediction models are accessible by any user through Numerai’s Signals and Tournament apps.
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The Signals application incentivizes users with NMR-based rewards for uploading stock market predictions. A user will send a signal that includes a ticker and numeric data for one of 5,000 stocks supported by Numerai. The algorithm then decides whether the user was right or wrong with their prediction, upon which is decided whether the user will be rewarded or have their stake burned.
The Tournament app facilitates a weekly collection of market predictions submitted and generated by data scientists. Users then stake their NMR tokens on a prediction of their choice. Similar to the way Signals works, users will be paid in NMR if they staked on the correct prediction, while their NMR will be destroyed if they are wrong. All predictions are rated by accuracy, while payouts are conducted once every four weeks.
Who Are the Founders of Numeraire? (History of Numeraire)
The hedge fund software is based on the Ethereum protocol, and it was developed and created by the hedge fund company Numerai. Numerai was founded in San Francisco, California by Richard Craib in 2015. From 2016 to 2020, the Numerai project had four separate funding rounds, in which the company raised over $21 million.
In 2017, the Numerai company issued 1 million NMR tokens and distributed the coins to data scientists who previously participated in tournaments. The main goal behind the project is to allow users to trade equities through an automated model based on AI, machine learning, data science, and cryptography.
What Makes Numeraire Unique?
Numerai is unique because it uses a combination of innovative technologies to enable users to trade equities and submit their prediction models. Numeraire incentivizes data scientists and users to submit prediction models and upload signals for market predictions. Through the system of incentivization that is supported by AI, machine learning, data science, and cryptography, Numerai enables users to earn NMR for their participation.
Numerai provides a unique software that represents a perfect way for financial advisors and data scientists to generate extra income by submitting trading strategies driven by relevant market data. As a crowdsourcing application that acts as a decentralized hedge fund, Numerai is a truly unique project that raises the bar for similar networks.
What Gives Numeraire Value?
The Numerai project draws its value from the technology used to create the software, technical capacity, and utility. The NMR token sources its value from its use case, which is to power all applications in the system, and incentivize users for their participation in the Numerai ecosystem. The intrinsic value of the project, which is noted in its innovative technology, often doesn’t match the market value since NMR price is subject to frequent changes.
The market value of NMR is affected by the volatility in the crypto market, but also by a wide range of specific elements and factors that may influence the price of NMR. Users can earn NMR, stake it on predictions, and can also trade it in the cryptocurrency market.
How Many Numeraire (NMR) Coins Are There in Circulation?
There are currently NMR in circulation out of a total of NMR. Numeraire has a limited supply much like a great number of cryptos, including Bitcoin. The finite supply acts as a mechanism against inflation and means that no new NMR tokens should be minted once the supply is exhausted.
Although the initial supply cap for Numeraire was 21 million, this was cut significantly by Numerai in 2019.
The number of Numeraire coins in circulation multiplied by the current NMR price in the market equals the market cap of Numeraire. The market cap defines the rank of Numeraire in comparison with other cryptocurrencies in the market and also determines its dominance and market share.
Other Technical Data
The prediction models that can be created by all network participants, including data scientists, are what form the unique hedge fund software that Numerai represents. Data scientists may download their data which is encrypted for an added layer of security. Upon submitting their prediction models, data scientists also need to stake NMR to prevent malicious activities and data tampering.
The models created by data scientists are then used for equity trading in real-life markets, which is how these models are tested. The top 100 prediction models are picked based on their performance in the market and data scientists are rewarded with Bitcoin (BTC). The top 100 data scientists also get their NMR stakes back aside from being rewarded with BTC.
How is the Numeraire Network Secured?
The Numeraire network is hosted on the Ethereum network which means that the network is secured as an ERC-20 type protocol. Numeraire also uses smart contracts to ensure public trust and keep the total supply of NMR to 11 million as pre-determined by the Numerai company.
Rewards are secured with the use of Erasure protocol, which is a set of smart contracts hosted on the Ethereum network. The protocol ensures that NMR staked on incorrect prediction models are destroyed and that users who staked their NMR on correct outcomes are rewarded accordingly. That is how Erasure keeps the incentivization system accurate and trustworthy.
How to Use Numeraire?
Numerai is used as a hedge fund software that enables users to earn NMR and Bitcoin based on network participation. Users and data scientists can submit their prediction models and stake their NMR on the predictions they believe will be most accurate. Users can trade equities based on predictions that are created with a combination of innovative technologies.
You can stake NMR and use it to bet on the prediction models you believe to be most accurate, while you can also earn NMR and source an extra income through the two Numerai apps, Signals and Tournament. You can additionally trade NMR on cryptocurrency exchanges and make a profit based on the difference between the buying and selling price.
How to Choose a Numeraire Wallet?
As an ERC-20 token, Numeraire can be stored in any wallet that supports Ethereum and the type you choose will likely depend on what you want to use it for and how much you need to store.
Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of NMR for more experienced users.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of NMR or more novice users.
Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your NMR, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your NMR tokens without hassle. Storing your Numeraire with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling NMR, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
Numeraire can’t be mined, unlike the more traditional blockchains such as Bitcoin. Numeraire is secured through the Ethereum network, which is slowly but steadily transitioning to the Proof of Stake protocol with the upcoming update Ethereum 2.0.
Numeraire can be staked on the protocol within the apps by users and data scientists. Users can stake NMR on prediction models and earn NMR if their predictions are correct. Data scientists can stake NMR to prevent tampering with uploaded market predictions.
Numerai is an innovative hedge fund aggregator that provides a great way for financial advisors and data scientists to earn extra profits based on their prediction models uploaded to the system. With Tournament and Signals, anyone can trade equities in real-life markets via Numerai’s software.
Numerai creates a global hedge fund driven by the NMR cryptocurrency and the joint capital of network participants who can trade equities and earn with correct prediction models within a decentralized economy based on AI, cryptography, machine learning, and data science.
Join the crypto revolution and start your Numeraire journey today!
What’s the difference between Signals and the main tournament?
Tournament participants start with hedge fund quality usable data while users have to come up with their own features for Signals, although they can train their models with historical targets provided. Also, the main tournament has a four week round resolve duration while that of Signals is one week.
Is staking on predictions the only way to earn NMR?
No. The team also offers various other NMR-earning opportunities such as translating technical material into other languages, creating or contributing to open-source packages like Numerox, and reporting vulnerabilities.
How to buy Numeraire?
Buying NMR is as easy as visiting Kriptomat’s how to buy Numeraire page and choosing your preferred method of payment.
How to sell Numeraire?
If you already own NMR and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.
Numeraire price is susceptible to radical changes within a relatively short period. NMR is subject to frequent trend reversals that align with the volatility in the cryptocurrency market and is in constant flux. Numeraire prices can thus dramatically rise or dip to match the market’s dynamics. You can check live Numeraire prices on Kriptomat.
As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, the price of Numeraire is also affected by demand from tournament participants and the deflationary nature of the coin.
The current Numeraire price is EUR.
The 24-hour trading volume of NMR is EUR. NMR is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of NMR and a max supply of NMR.
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