search icon
      blog search icon

      Numeraire – The blockchain’s hedge fund - Stocks Telegraph

      By Muskan

      Published on

      September 22, 2021

      6:49 AM UTC

      Numeraire – The blockchain’s hedge fund - Stocks Telegraph

      While the cryptocurrency market has exploded in the current year, there is still a long way to go for a mass-scale adoption. One way to boost the adoption of cryptocurrencies is by integrating the stock and derivatives market. As the blockchain technology has unexplored uses, its power can also be harnessed to give users exposure to other markets like stocks and commodities. Numeraire is a platform designed to do just that. Let’s delve more into what and how Numeraire does what it does. 

      Numeraire was founded by a San-Francisco based company by the name of Numerai in 2015. The founder Richard Craib was funded by some notable names in the industry and the Numeraire token was launched on Ethereum’s mainnet in 2017 without an Initial Coin Offering. 

      What is Numeraire? 

      Numeraire is software designed as a hedge fund on the blockchain of Ethereum. It enables users to trade equities on Ethereum’s blockchain by utilizing the blockchain technology. The platform also makes use of predictive models through artificial intelligence to enable users to make smart investment decisions. 

      The core of the platform can be divided into two parts: Signals and Tournaments. Signals provide a channel for users to submit stock market strategies for a specific asset while the Tournament is a weekly competition where users can bet on whichever trading algorithms submitted by data scientists, they think has the most potential. The native token, NMR, is used to stake on the outcomes of tournaments. Users are either rewarded NMR if their outcome is correct or is destroyed.  

      The Numerai platform is also known as an artificial aggregation model – a meta model – which incorporates all the trading strategies and algorithms submitted by data scientists for competitions. It then trades equities on the basis of these algorithmic models also allowing users to access and use the models deployed. 

      What is the future of NMR? 

      Numeraire is regarded as the world’s hardest data science competition. The community of Numerai is growing steadily. It currently has 3,398 models staked with around $28 million worth of coins staked. The platform offers, on average, a 15% 3-month return on NMR staking. It may not be one of the well-known platforms in the market but Numeraire does have good long-term investment potential. 

      According to the estimates of Wallet Investor, NMR token is expected to be trading hands at $66 in a year’s time and reach towards $157 in five years’ time – an increase of more than 200%. Digital Coin Price has similar bullish predictions for cryptocurrency. Their estimates place Numeraire at a price of $73 by the end of 2021 and at $183 by 2026.

      More From Stocks telegraph