$NMR Case Study: The Rise Of AI based Blockchains🤖
$NMR Case Study: The Rise Of AI based Blockchains🤖
NumerAI , aiming to revolutunize the world of hedge funds at the intersection of AI & Crypto.
2021 was the year of crypto, we saw a huge explosion in the crypto market, with billions of dollars being raised by blockchain and crypto startups. In 2023 a new darling emerged AI, with the advent of ChatGPT. AI startups became the talk of the town.
NumerAI is one such company, aiming to revolutunize the world of hedge funds at the intersection of AI & Crypto.
TL;DR🍿
$NMR is unique as a cryptocurrency, serving not just as a means of transaction but also as the staking mechanism for the Numerai tournament🏆
The success of AI and blockchain technologies has contributed to the rise of AI crypto coins🔺
Numerai's data science competition, the Numerai Tournament, combines machine learning and cryptocurrency, attracting global talent🌏
What is $NMR?
$NMR is a native token of Numerai, a hedge fund that uses crowdsourced machine learning models to make predictions on financial markets. $NMR is unique because it is not only a token used for transactions, but it also serves as the staking mechanism for the Numerai tournament, where data scientists compete to create the best machine learning models.
Why are AI crypto coins doing so well?
Ever since the advent of ChatGPT, any company with AI in its name seemingly has blue-chip potential. Any company working on AI is considered a hot cake by investors and consumers alike. You might have heard about 1-month-old companies raising hundreds of millions of dollars from investors recently. This is one reason that AI crypto AI coins are performing well in terms of price.
The other reason is simply, that it works. AI and blockchain are two of the most cutting-edge technologies in the world. Blockchain ensures the authenticity and quality of the data, while AI uses the data to make decisions. Both these technologies go hand in hand, showing us the huge potential they have.
The Paradigm Portfolio
Founded in 2018, Paradigm is a venture capital investment firm based in San Francisco, California. The firm seeks to invest in cryptocurrency and technology-based sectors. It has invested in over 105 crypto and blockchain startups, which have a combined market cap of almost 25 billion dollars.
Paradigm is one of the investors in NumerAI, aside from the Paradigm portfolio, several projects have shown significant promise and are thriving in the cryptocurrency space. Some of these projects include:
Uniswap: Uniswap is a decentralized exchange (DEX) that allows users to swap various ERC-20 tokens directly from their wallets. It is a popular choice among traders due to its low fees and high liquidity.
Lido DAO: Lido DAO is a decentralized autonomous organization (DAO) that allows users to stake their Ethereum (ETH) and receive stETH, a token representing their staked ETH. The project aims to make staking more accessible and liquid for users
Axie Infinity: Axie Infinity is a blockchain-based game that allows users to collect, breed, and battle digital creatures called Axies. The game has gained widespread popularity, and its native token, AXS, has seen significant value appreciation. Axie Infinity has also become a pioneer in the play-to-earn model, where players can earn tokens by playing the game.
StarkNet: StarkNet is a Layer 2 scaling solution for Ethereum that aims to increase the throughput and reduce the costs of transactions on the Ethereum network. The project uses zero-knowledge proofs to validate transactions, allowing for faster and more efficient processing.
What Are They Building
The heart of Numerai is its data science competition, the Numerai Tournament. This competition is unlike any other, as participants don't just submit predictions; they build machine learning models to predict the stock market. Numerai provides a free, obfuscated dataset of clean and regularized financial data. This allows data scientists to model without needing any financial domain knowledge. Participants then build machine learning models to predict this target.
Once the models are built, participants generate live predictions daily and are scored on correlation and hedge fund contribution. Participants can stake their models with NMR, Numerai's cryptocurrency. Positive scores earn more NMR, while negative scores have a portion burned. This unique approach combines machine learning and cryptocurrency, attracting global talent.
Team Behind It?
Richard Craib is the founder and lead fund manager for NumerAI, he is a data scientist having degrees from Cornell and UoC Berkeley.
He is joined by a team of more than 40 people ranging from top-tier data scientists to heavy hitters who have proved their mantle in top-tier hedge funds of the world. It also has a network of over 7,500 data scientists taking the platform forward.
Latest News & Updates
As the crypto market rebounds, $NMR, NumerAI's coin, has seen impressive performance, with over a 170% increase in the last month alone. The company is also gaining significant traction online, being hailed as a leader in the Web3-AI space.
It’s important to note that this research was written for the sake of education and pure entertainment value!
Please DYOR on every project, and remember, this is not investment advice🙏
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