Summary:
- What is The Numeraire Platform and how does it work?
- Advantages of the Numeraire exchange.
- Numeraire’s past, present and future price positions.
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The Numeraire Platform
Numerai is a platform that is Ethereum-based that allows both data scientists and developers to experiment and create machine learning models, with more reliability. The main goal of the Numerai platform is to introduce decentralisation to the data science field and it aims to allow developers to compete in creating effective machine learning prediction models.
Numeraire powers Numerai, Numerai is a San Francisco-based hedge fund that crowdsources artificial intelligence in order to make investments in major stock markets around the world. Numeraire (NMR) tokens holders are able to stake their tokens every week based on specific predictions. Successful predictions are further rewarded with more NMR.
Numaraire was founded in 2015, Numerai claims to be the first hedge fund to launch a cryptocurrency in the crypto market. Numerai differs from traditional hedge funds in that it relies on the predictions and data that is produced by tournament participants to participate in the stock market; they also claim to be the first hedge fund to use machine learning so heavily in their investment strategy.
The current market capitalization of Numeraire is more than $87 million. There is a maximum supply of 11 million NMR tokens and 5,888,503.64 of them are currently in circulation.
Numeraire’s Uniqueness
Numerai and the Numeraire token are unique due to their creation and the idea behind it. This is reportedly the first cryptocurrency to be released and created by a hedge fund. One of the Numeraire (NMR) tokens best advantages is that it is awarded to those data scientists whose models are top performers in the Numerai tournaments. Therefore, the NMR token’s value increases as the number of entries and tournament competitors increases.
In addition, the models that are created for tournament participation allow Numerai to participate in stock market trading based on those results that are revealed by participating projects. This approach to stock market investing is innovative and it makes Numerai one of the only hedge funds that relies significantly on AI-generated data predictions.
Advantages of the Numeraire Crypto
- Numeraire (NMR) tokens are awarded to data scientists whose models are top performers in the Numerai tournaments.
- Numeraire’s (NMR) token value increases as the number of entries and tournament competitors increases.
- Successful predictions are further rewarded with more Numeraire (NMR).
- Numeraire (NMR) also offers both traders and investors long-term earning potential and it is an investment that is profitable.
- Those who hold the Numeraire (NMR) token are opening themselves up to the possibility of good returns.
- Numerai has paid out millions of US Dollars already in the form of incentives and in an attempt to increase the visibility within the data science community, meaning they are committed to growing the Numeraire platform.
- NMR is an ERC-20 token, meaning it is secured on the Ethereum blockchain with Proof-of-stake (PoS) consensus mechanism offering extra security.
- Due to the Proof-of-Stake consensus mechanism that supports NMR, there is no need for the platform to rely on high electrical or computable power to create new NMR tokens, thus, the consensus is much more scalable and can easily be incorporated in different use cases.
Past, present and future prices of The Compound network (COMP)
The Numeraire (NMR) token hit its first price peak in January of 2018, at a price of $52.16, thereafter the price continued to fall throughout 2018. The price of NMR remained low throughout 2019 and for the first quarter of 2020. During 2020 the price of NMR increased to a price of $52.74 during August. The price then showed much volatility and climbed to an all time high of $90.79 during April 2021. Since then the price has staggered in both the upward and downward directions, the crypto has seen much volatility, which is a normal trend for the volatile nature of the crypto market.
Over the past few months, the global markets have been facing strong investor risk-off sentiment in the wake of the geopolitical tensions, Covid-19 lockdowns in China and supply chain issues. The cryptocurrency market has followed the trends of the greater market during these times, therefore the price of most cryptocurrencies have been falling, NMR does fall under this category.
According to some analysts, the future price of The Numeraire network (NMR) could reach up to $53.11 by 2025 and could see a price of more than $130 by 2030. However, it is important to remember that this future price prediction is based solely on data and does not take into account factors such as investor sentiment and the ever changing market conditions, both of which make it difficult to make accurate future price predictions.
NMR Price Chart
Sources: coinmarketcap.com, finance.yahoo.com, help.coinbase.com, cryptonewsz.com, currency.com
