Numerai: A Crowd-Sourced Hedge Fund
Here at CrossTower Classroom, we want to prepare our students and users for the future. This is why I wanted to explain the utility of Numeraire, an asset listed on CrossTower Global and the token incentivizing the world’s first crowd-sourced hedge fund, Numerai.
Numerai is a data science platform where users, usually data scientists, can compete in weekly data science tournaments. The goal of these tournaments is to build machine learning models on top of Numerai’s shared financial data to help create predictive models for the stock market.
Numerai shares data that is clean, obfuscated, and regularized, designed to be usable right away. Users then apply machine learning models to track correlation between trading data. Those who pair Numerai’s digital asset, NMR, to their model can earn rewards based on their model’s performance. Pairing NMR to predictive models incentivizes users to continually and creatively enhance their market prediction models.
Data Science Tournament
Numerai is marketed as the hardest data science tournament on the planet. Data scientists find correlations throughout the data and the fund uses this predictive modeling to create a market-neutral strategy. Numerai outperformed other market-neutral hedge funds by an average of 29%. Since inception, Numerai has paid out approximately $82,464,915 to active participants with the most accurate models. With incentives offered to any data scientist, Numerai has been able to source better predictive modeling than the likes of Renaissance Technologies, Aurum, and Two Sigma.
Numerai is just one example of how open, aligned, and decentralized networks can redefine human coordination. Any user can participate in building the world’s first crowd-sourced hedge fund with Numerai.
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CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.
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