Numeraire Review: An Introduction To A Hedge Fund Decentralized Platform

This Numeraire review will surely give you more on this promising platform. We will discuss in detail what Numeraire is, the features, unique token, and many more. Just read on!

A crypto Hedge Fund is another way an individual can invest in a variety of underlying securities. It is different from an exchange, a crypto index fund, or an ETF, and teams of expert investors manage it.

A hedge fund network allows users to earn from various cryptos selected carefully, like the ‘crypto copy’ fund. This fund allows investors to monitor the market movements of established coins like Ethereum, Dash, Ripple, and Bitcoin.

Numeraire is one of the Hedge Funds known as the ‘hardest data science tournament on the planet.’ The tournament in this platform creates the data models used to increase the yield of investments.

Numeraire is a hedge fund based in San Francisco and uses its NMR crypto to settle payments. It adopts the mechanism of artificial intelligence that is crowdsourced and investments in renowned stock markets in the world.

However, Numeraire aims to become the most powerful Hedge Fund globally using its NMR incentive crypto.

What Is Numeraire (NMR)?

The Numeraire is a cryptocurrency platform that is built on the Ethereum network. It allows data scientists and developers to experiment and establish reliable machine learning prediction models.

It is a Hedge Fund company that crowdsources a reliable financial model without exposing the secrecy of the data. The platform crowdsources with artificial intelligence, data science, machine learning, and cryptography.

The Numeraire aims at introducing decentralization to various fields of data science. And initiate competition among developers who create effective learning machine models for predictions.

The platform declares itself as the number one hedge fund platform to launch crypto in the crypto market. And the first to fully adopt a machine learning strategy in its mechanism of investment.

However, the hedge fund crypto assists scientists in predicting the financial models with encrypted data. Each scientist can download his encrypted (for protection) data from the company’s official website, which they use in creating models that can predict trends in the market.

The models are designed with both artificial intelligence and machine learning algorithms.

The Numeraire rewards the scientists with the best models in Bitcoin and pays other incentives in its ERC-20 token. Some scientists also stake the NMR token on their respective models to shut out anything that may tamper with it.

Founders of Numeraire

Richard Craib is the current CEO of Numeraire. He graduated from the University of Cape Town in 2008 but founded the Numeraire project in 2015.

He later acquired a bachelor’s degree from the University of Cornell and spent one year in Berkeley UC. Richard’s professional career kicked off with the Numeraire project, which has advanced him to Forbes thirty under thirty designee position.

The Numeraire CEO Richard is known for his professional and innovative approach to managing a hedge fund. And also, his revolutionary intelligence to rely mainly on artificial intelligence for the prediction of stock price. He nurtured the Numeraire idea during his service as an asset manager for a company in South Africa.

The Numeraire project has developed as the biggest global ‘data science’ tournament in the world. The project Board of directors is the Founder and CEO, Xander Dunn and Georey Bradway.

The project advisors include Fred Ehrsam, Olaf Carlson-Wee, and Ash Fontana. Fred is the Coinbase co-founder, Olaf is a Polychain capital founder, and Ash is a board member at Kaggle.

The project launched its crypto just one year after it was developed. The idea was to put an end to the challenges the crypto had while operating on Bitcoin.

 Advantages of the Numeraire

The advantages of the Numeraire project and its native token are outlined below;

• The Numeraire platform conducts a weekly completion which allows scientists access their data to develop their ‘financial model’. Then, they will upload these models on the platform for a 3-week real-world market test.
• The Numeraire network will then select and reward the scientist’s effort with the top 100 performing models in Bitcoins.
• The scientists in the Numeraire platform are required to stake some Numeraire NMR tokens to secure their models.
• The scientist with a successful model earns back his token and some Bitcoins.
• The scientist with the losing model also loses their staked NMR tokens. In addition, these Numeraire tokens are burned.

How Does the Numeraire Work?

The Numeraire working mechanism is quite simple and easy to understand. This is how it works.

First, members of the platform will receive an already modified dataset once they activate their accounts. With this, they will never know the assets that they will refer to. Second, the data models generate predictions which the users submit while participating in the weekly tournaments.  The Nemerai network then applies these predictions to another set of data in the market.

Participants who submit the correct prediction when compared with the data from the market receive a reward. The rewards are known as payout, and users receive it one month after the conclusion of that week’s tournament.

The Numeraire network also recognizes uses whose predictions generate trades or investments that are the most profitable. The platform puts the predictions of these users together to develop a Metal Model. The Numeraire ‘hedge fund’ uses this Metal Model that is created to transact assets better.

However, the Numeraire Metal Model was back-tested, and the result was captured in their medium article. This test shows that the mental model is more effective and less correlated than the machine or linear learning models. This means that Metal Model is the most effective data model in our financial market.

Another unique thing about the Numeraire mechanism is that the infrastructure is trustless. The network maintains masked financial data and encouraged users also to maintain the privacy of their data models. This is because users only need to share their predictions with Numeraire and nothing else.

The Numeraire Token

Numeraire formerly uses Paypal to pay the winners of their data tournaments conducted every week. They later switched to Bitcoin after falling out with Paypal. They observed the following while using Bitcoin;

1. That it is cumbersome for them to use
2. Users require an incentive that will enable them to create high-quality data models’ from quality predictions. They do not just need to spam the prediction box with a low quality ‘data model hoping to win some funds.

The Numeraire (NMR) token is the Numeraire ERC-20 token built on the Ethereum network in 2017. It serves two purposes in the Numeraire platform

1. It is used for payout to predictors or scientists who won in the weekly tournament.
2. Contestants stake it to enhance the effectiveness of their private data models. This implies that competitors stake the NMR tokens when trying to submit their predictions.

Successful users in the platform receive a payout equivalent to the amount of NMR they initially staked. The Numeraire is a deflationary asset because stakes NMR tokens from unsuccessful predictions are burned. Numeraire’s used case has recently increased to payment and staking using the Erasure ecosystem.

Erasure is one of the marketplaces where members can buy and sell data or request specific information. It is launched in 2019 by Craid, who is also the CEO of Numeraire. The Numeraire, as contained in Erasure’s website, is part of the broader project aimed at decentralizing and sharing data.

The Erasure project aims to expand the ‘skin in the game’s goal into other social interactions. It also offers a browser ‘plug-in’ that shows only details of individuals who staked their cryptos based on their opinion.

The Origin of Numeraire Token–Numeraire (NMR)

The Numeraire did not launch any ICO. However, they have an initial total supply of 21million, similar to Bitcoin. The team initially airdropped 1million tokens to all the platform members, and they were around12,00 members at that time.

The Numeraire team’s funds to kick start this project came from private investors and other hedge funds. These funds totaled 7.5 million in 2016. Moreover, they have continued to record even more investment afterward.

How to buy and store NUMERAIRE tokens (NMR)?

Let’s first look at the various places we can buy the Numeraire before considering the type of wallet compatible with the NMR token.

How to buy NMR

Besides winning the Numeraire data science tournaments, the only way to get Numeraire is to buy it from an exchange (and remember you need some NMR to stake to enter the tournament).

You can buy the NMR tokens from varieties of exchanges. They are about seven of them as of July 2018, including Upbit, Forkdelta, Bittrex,  Yobit, etc.  The second option where users can get the Numeraire token is by winning its data science tournaments.

NRM trades mainly on Bittrex and Bilaxy. These trades amount to almost USD1.4 million that makes up the USD2 million the network trades daily. Bilaxy alone handles nearly 50% of the NMR trades.

It is safe and easy to use but doesn’t pose the same clout that Bittrex has. However, users who wish to use these exchanges should worry less as their order books show that liquidity is pretty good.

Ether and Bitcoin are among the accepted exchanges, but users can also get NMR from Doge, Waves, and With.

You can also buy the NMR token using some fiat currencies in some networks like Yobit accepts USD. In addition, Upbit and Russian Rubles accept Korean Won.

All the exchanges listed above are mere platforms where you can buy or trade the NMR token. But CoinSwitch helps you to select the best platform to buy the token from.

It is one of the biggest crypto exchanges in a financial institution. It supports over 45,000 pairs of cryptos and over 140 coins. You are allowed to choose any pair of your choice with the corresponding NMR token.

The work of the CoinSwitch is to enhance the comparison at various exchanges by showing the correct prices from other exchanges. There is no need to rely on or create the wallet for the exchange you used to buy the NM.  You can handle all transactions from your private wallet if you are using CoinSwitch.

How to Store Numeraire (NMR)

The NMR token is an ERC-20 and is easy to store. You can store it in any wallet that supports Ethereum, which include

• The desktop crypto wallets like My Ether Wallet, Mist, and Exodus.
• Mobile crypto wallets like Trust Wallet and Atomic Wallet.
• Hardware wallets like Trezor and Ledger Nano S.

The hardware wallets are the most secure of all wallets. The desktop wallets are compatible with Linux, Mac, and Windows operating systems. Jaxx is another desktop wallet for Linux, Mac, and Windows operating systems. In addition, it is a mobile wallet for iOS and Android phones and a web wallet for Firefox and Chrome extensions.

ETHAdress is a paper wallet, and MyEtherWallet is a renowned Web wallet.

How Much NMR Token is in Circulation?

Numeraire reduced the total supply of NMR tokens from 21 million to 11million in June 2020. The Numeraire team then minted the outstanding balance of 10 million tokens. Before this incident, Numeraire only mints the tokens required to reward participants that were successful in the ‘data science’ tournaments.

The act of minting tokens for reward was formerly built alongside the NMR token. It has a smart contract that burns the stakes owned by the participants that are not successful, which they use as rewards for the successful participants.

The NMR 2019 update, according to Richard Craib, was organized basically to move the network towards decentralization. The Numarai team wanted to utilize the NMR total token supply and allow the smart contract. They agreed that the smart contract should handle all token issuance and burning of the NMR.

However, Numeraire gave a 3 million NMR token to one of the ‘data science’ tournaments that will conclude around May 2028. The team made this offer before Numeraire decided to allow the smart contract to take over. The Numeraire also reserved about 1 million NMR tokens for future partnerships and airdrops.

The above information is analyzed thus;

11million minus 3million plus 1million gives a total token supply of 7million. From CoinMarketCap, 2.5 million NMR tokens are presently in circulation. To date, there exists an unresolved dispute on where the remaining 4.5 million tokens are, who is holding them or what purpose they served.

What Makes Numeraire Unique?

Together with its Numaraire token, the Numeraire network is uniquely based on the technology barking their creation.

The NMR is recorded as the number one token to exist as a hedge fund.

Another unique quality is that it serves as a reward to the data scientist whose data model did well in the weekly tournament. This act makes the NMR token even more valuable as many people sign in to the tournament and compete.

The models used in the tournament enable the Numeraire to participate actively in ‘stock market trades.’ The participation is basically on the outcome of the participating projects.

It is an innovative approach to stake the Numeraire among the hedge funds to use A1-generated data predictions fully.

NMR Price Live Data

As of the 27th of July 2021, the NMR token rate is $34.45 with a 24hour trading volume of USD 27 230,82. It has a total of 4,991,336 NMR tokens in circulation with a maximum supply of 11,000 MNR cryptos.

Image Credit: CoinMarketCap

The token is 4.25% down within the last 24hours.

Conclusion of Numeraire Review

Analyzing the information given by this Numeraire review shows that it is an ERC-20 token. Richard Craib founded the network in 2015 together with his team of experts. The first hedge fund is created and provides a more accurate prediction than others with hired experts.

The Numeraire rewards any data scientist that wins in the weekly tournament with its native token –the NMR. Users of the Numeraire platform can stake this token to qualify for the tournament. The Numeraire’s price potential has been so impressive compared to other digital currencies.

The NMR token is burned whenever any data scientist loses in the weekly tournament or submits wrong information to Erasure’s marketplace. Thus, this mechanism will gradually decrease the NMR total token supply with time.

The Numeraire is not volatile as it is bound to stay until May 2028, when the ‘mega data’ science tournament will conclude on the network. Then the 3 million NMR tokens that have been won will be sold out. Then new NMR tokens will be supplied to the markets through the exchanges for members to buy and stake.

We hope you found this Numerair review educative enough. We recommend that you do thorough research and be convinced of your findings before signing into this hedge fund.

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