An AI coin investors are familiar with has skyrocketed nearly 8.5% in the last 24 hours after Bloomberg reported that the fund gave investors 20% returns last year.
This artificial intelligence coin is on the rise with the news of Bloomberg
Related AI coin Numeraire (NMR) rose 8.8% to $21.64 as Bloomberg made headlines on the fund’s return to investors last year. The ‘numerai hedge fund’ is backed by billionaire investor Paul Tudor Jones and uses crowdsourced trading ideas to generate profits. The fund started in 2019 and began offering $50 million to quants and researchers in 2020 in exchange for trading signals.
According to Bloomberg, Numerai received $100 million in inflows in 2022, delivering a 20% return to investors despite the market downturn that saw the value of several cryptocurrencies eroded by more than 90%. The data shows a 379% increase in 24-hour trading volume as investors seek to capitalize on the relatively low $127 million market cap of the NMR token, which is paid out to providers of successful trading strategies.
Numerai founder Richard Craib told Bloomberg that once the company secures $1 billion in assets under management, it will offer users to pay in other currencies, but for now they are paying via NMR.
As we reported as Kriptokoin.com, Binance’s new AI product, introduced by Binance CEO CZ, triggered the rally in the artificial intelligence coin market. Around the same time, Bloomberg launched Numerai with its robustness in bear market conditions.
Bloomberg makes Numerai headlines
According to Bloomberg’s report, the Paul Tudor Jones-backed hedge fund has caught another $100 million inflow after rising 20% in the market turmoil last year. San Francisco-based Numerai LLC invests in accordance with the wishes of the community by compiling business ideas from freelance data experts, engineers and scientists who are then rewarded with local cryptocurrency. The Numerai One fund has yielded 49% returns since its inception in September 2019.
The 35-year-old founder, Richard Craib, says Numerai, which is also backed by former Renaissance Technologies executive Howard Morgan, now controls nearly $300 million after new allocations from a fundraiser and US multi-manager. The firm also recently raised $10 million from investors including Union Square Ventures.
How did Numerai succeed?
Numerai gives its users abstracted data representing about 2,000 features of each stock, without anyone knowing the specific company they are analyzing. For example, contributors are presented with a number that represents the market return rather than the actual return. As a result, trading ideas become based on statistical patterns rather than being driven by specific economic or market intuition. Oftentimes, amateur financial professionals use machine learning techniques to scan data.
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