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Datascience

NMRBTC: Research Post + Potential Macro Double BottomDisclaimer: This is a position that I've already entered and am largely in the green on, as shown above. *This is not financial advice. This post is not a recommendation to buy or sell any asset* Over the past few weeks, I've been doing some research into a project I personally find both interesting and promising. Numeraire (NMR) is a token that has largely flown under the radar ever since 2017, and has only dumped. With the NMR token being near all time lows, I thought it was time to see where the project was headed. Originally, I found out about this project towards the end of this summer due to a news headline showing that major exchanges had come together and made a "Crypto Rating Council" to determine the security / commodity status of a set of coins. www.cryptoratingcouncil.com On this list, one token stands out, NMR. At least all of the other tokens have persisted in crypto community discourse for some time now, but I personally had never heard of Numeraire, and wondered why these exchanges would even be interested in giving such a arbitrary project a rating. These exchanges and other associated companies include none other than Coinbase, Kraken, Bittrex, Circle and GrayScale, among others. On top of this, there was what seemed to be a large accumulation only on Poloniex roughly 3 weeks ago, seen here: Upon closer examination of 1m candles, there was some very odd trading occurring at this time as a result, so whether this was purely accumulation by a large player is unknown. Do do your own assessment of the chart to see what I mean. So, after this all sparked my interest, I did some digging. www.youtube.com This is a keynote from the recent convention the Numerai team hosted in which they describe their vision for their project, and the usage of the NMR token. As it turns out, Numerai is a hedge fund founded by Richard Craib, Berkeley / Cornell grad and former hedge fund member. Numerai, the hedge fund, hosts tournaments between data scientists to essentially create what they coin as a "meta model" of whatever asset they're trading. They do so by providing "hedge-fund quality" data to data scientists, with which these participants then use their own machine learning algorithms to build a model to most accurately predict the next outcome. This data, including its features and target values, is obfuscated as to prevent bias by the participants as well as to abide by the agreements Numerai has with its data vendors. The best performing data scientists receive payouts from the hedge fund in Bitcoin (thus not forcing selling pressure on the NMR token), and are required to stake NMR with their prediction models so that they have incentive to be as accurate as possible. Furthermore, these participating data scientists are given reputations on the Numerai leaderboards. On top of this simple use case for the token, the team has been working on a new protocol they call "Erasure" which is essentially an Augur-esque predictions market for any asset a user may want to look into. This is described in the keynote above, as well on the Numerai's Medium page, here: medium.com The team is also looking to deploy ErasureQuant and ErasureBay, two interesting applications based on top of Erasure that I definitely want to do more research into. As of now, NMR is hard capped at 11 million tokens, and has a token burn feature included (associated with Numerai's reaction to submitted prediction models, as well as a contractual griefing mechanism used on Erasure). Connections: -Fred Ehrsam, Co-founder Coinbase, Founder of Paradigm (venture capital) -> Numerai investor, friend of Richard -Union Square Ventures (several partners invested, including Fred Wilson, 700k followers on twitter) -Renaissance Technologies, the world's most dominant hedge fund. All of these connections are publicly available in this video: www.youtube.com , and this video vimeo.com , as well as on the Numerai website: numer.ai Recent developments: -Erasure was launched only a few months ago in August, and is undergoing continuous development. -Active community on Reddit, Numerai's RocketChat forum (on the website), Telegram, and in the Numerai tournaments. -ErasureCon was hosted in October -https://www.coindesk.com/numerai-token-sale-raises-11-million-from-vc-firms-paradigm-placeholder A new round of investment for the project just happened earlier this year, led by Ehrsam's Paradigm. In closing, this is intended just to be a research post, and I do implore anyone reading to do their own research. If you find this project interesting or find anything else to add to the research I've done into it, please do message me @CoinRepoMan on Twitter (twitter.com).
by see_are_em