Numerai Hedge Fund Offers $50M in NMR Tokens for Fresh Stock Market 'Signals'
Numerai said its new signals monetization system will take any data set, from any source.
Hedge fund Numerai is offering $50 million of its numeraire (NMR) token to quants, researchers and even fellow funds that provide original stock market "signals" into its data clearinghouse, Numerai Signals.
- The startup said its new system will allow anyone to monetize novel market intelligence by sharing it with Numerai, whose data scientists have long crowdsourced trading strategies.
- This can yield higher returns than if the individual personally traded on the stock market signals, Numerai claims.
- One caveat: While anyone can input signals, only those who stake NMR can earn the payout.
- That's not a risk-free endeavor. A Numerai representative told CoinDesk that up to 25% of staked tokens can be earned or burned per round.
- NMR was trading 8% higher on Monday, according to CoinGecko, however the day's largest pop preceded the public unveiling of Numerai Signals.
UPDATE (10/12/20 19:32 UTC): This article has been updated to reflect who can utilize Numerai and how the payout mechanism works.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.