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.