【Numerai】A hedge fund powered by crowd intelligence using AI and blockchain / Assets under management have grown rapidly since its 2015 founding and now stand at $500 million / @numerai

This is a next-generation hedge fund model.

Good morning.
I’m Mitsui, a web3 researcher.

Today I researched “Numerai”.

What is Numerai?
Detailed mechanism
Transition and Outlook
The Potential of Hedge Funds Utilizing AI and Blockchain

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TL;DR

• Numerai is a “crowdsourced hedge fund” that distributes anonymized data globally, enabling data scientists to submit and stake AI models to create a massive ensemble AI, which is then used for stock trading.

• Prediction accuracy is evaluated over 20 business days using CORR and MMC. Based on the results, either NMR rewards or burns occur, and the MetaModel’s weights are continuously optimized.

• Since its founding in 2015, AUM has experienced rapid growth. Through the introduction of Signals and the partnership with JPMorgan, it continues to expand as an innovative investment model leveraging AI and blockchain.

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What is Numerai?

Numerai is a hedge fund powered by crowd intelligence that leverages AI and blockchain technology.

The project’s goal is to build “the world’s last hedge fund,” aiming to create a 21st-century asset management model by leveraging AI and decentralized networks.

Details will be explained later, but here’s a super simple explanation of how it works:

1. Numerai is giving away “data” for free

2. Data scientists around the world are building AI models.

3. Data scientists confident in their predictions stake $NMR

4. Numerai combines all models with weights to create a massive AI.

5. Using this AI, Numerai actually trades stocks.

6. Data scientists whose submitted models achieve confirmed results will receive rewards, while staking for those with poor performance will be partially confiscated.

It’s somewhat similar to the concept of prediction markets. Numerai is a hedge fund that manages assets using a massive AI model that continuously combines the strengths of various machine learning models, built on open-source data.