Hedge fund Numerai is rewarding Data Scientists to predict the stock market by making them build learning models that can make predictions on the stock market data.
What is Numeraire?
Numeraire was launched in Feb 2017 as a crypto token on the Ethereum network. 1 Million Numeraire were rewarded to 12,000 Data Scientists to allow them to join the Numerai network. Numerai is a new kind of Hedge fund that allows Data Scientists to use Numerai’s stock market data and build learning models on top of it. Then the data scientist can submit predictions to the network and get rewarded with more Numeraire. The Numeraire is available to be exchanged to BTC on Bittrex.
Making money with Numerai
When a new learning model is submitted to Numerai, it validates those models against historical data and makes payouts depending upon how the learning model performed. Other than this, Numerai offers Data Scientists to stake their Numeraire for live predictions. This incentivizes live performance and disincentivizes overfitting.
Staking Numeraire on Predictions
When a data scientist submits predictions to Numerai, he is able to stake his current Numeraire on his predictions. He is able to send his Numeraire to a smart contract on the Ethereum network which rewards him more Numeraire’s for accurate predictions and destroys his Numeraire’s for inaccurate predictions. This makes Data Scientists to build Learning models that performs better on the live data rather than just overfitting the historical data.
Numeraire’s Current Value and its Future
Numeraire was recently added to Bittrex exchange allowing users to convert their Numeraire to BTC instantly and allowing them to buy Numeraire instantly with BTC. Since then, the value of Numeraire has increased by 400%. Numeraire currently ranks at #39 on CoinMarketCap.
Numerai has attracted the attention of the biggest artificial intelligence based Hedge fund Renaissance Technologies. Numerai is still new and not known to many Data Scientists. New Data Scientists that want to join the Numerai network will have to buy Numeraire from exchanges which will increase its market value whilst also promoting the future of Artifical Intelligence.
Are you a Data Scientist? If you are, would you like to take part in the Numerai program to earn rewards? What do you think is Numerai’s future? Let us know in the comments.