Investing is a risky activity, there’s no doubt about it. Whether you prefer crypto or stocks, there’s always a chance things can go wrong and the asset — or the industry at-large — tanks. However, in the technological age, there are also efforts to mitigate risk using artificial intelligence (AI) and other savvy tools. The Numerai (NMR-USD) network is an innovative way of doing just that. Now, as more investors become aware of the project, money is starting to flow toward the NMR crypto.
Numerai isn’t a crypto network in the traditional sense. When most people think of blockchain projects, they think of layer-1 networks, metaverses, DeFi lending platforms and the like. However, Numerai is less of a platform for services and more of a competition. Specifically, its developers call it the “hardest data science tournament on the planet.”
This platform invites data scientists from around the world to put their machine learning knowledge to the test. To participate in the network, one can download the Numerai dataset. From there, users then build machine learning models using the data. The ultimate goal for participants is to create a model that most accurately predicts changes in the stock market. With this knowledge, the Numerai hedge fund can automatically invest using the crowd-sourced predictive models.
NMR Crypto Booms as Numerai Pushes Machine-Driven Investing to Its Limits
The NMR crypto is a unique aspect of an already very unique network. Primarily, it functions as a way to reward data scientists for participating in the project. However, it does also have uses for the average investor.
NMR helps reward entrants based on the success of their entry. Those whose entries have higher scores on the leaderboard will generate higher NMR staking rewards. In general, NMR generates a fairly impressive return. As of right now, stakers earn an average of more than 8% over three months. There is currently around $21 million in NMR staked to the network.
That said, users who aren’t looking to participate are still able to buy, hold and stake NMR to foster network growth. As more scientists participate, the Numerai hedge fund will also adopt the highest-performing technologies for its real-life predictive hedge fund. Essentially, the network is becoming the largest, crowd-sourced AI hedge fund in the world. If successful, it will use machine learning to actively trade stocks at the highest level of performance possible. That’s a unique idea in the blockchain space, making NMR a very appealing purchase.
In recent days, more investors have warmed up to this project, placing their own bets on Numerai’s success. In the last 24 hours, transaction volume has increased tenfold. That near 1,000% boom in volume is doing well to drive up NMR prices. With an increase of about 15% currently, NMR tokens are pricing in at the $29 mark.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.