[Translated] Ethereum-based hedge fund, Numerai

AI-powered hedge fund. I never would have thought about it two years ago, but I started to think that in a few years it might become a normal investment option.

There was talk of a “profession that will disappear in ten years,” and it seems that investment analysts and currency traders might be included. However, when cryptocurrency/crypto is involved, owning tokens can easily place you in a shareholder or owner-like position of such an AI hedge fund (setting aside legal issues). It’s an appealing world.

This time,Numerai（Numerai?）

For investment analysts, currency dealers, MT4 EA or trading bot developers, and those interested in them, this is a must-read.

A hedge fund based on Ethereum by Numerai

Numerai is an AI-based hedge fund that uses data science and machine learning models.The models used for trading by Numerai are those submitted by users (data scientists) on the platform,and on that platform, users can receive rewards in Numeraire tokens for excellent models.

Numeraire itself is not a currency; it is used by data scientists to “bet” on their machine learning models and how they perform in real markets and trades. By making such bets, scientists can receive something like dividends for successful models.If Numeraire achieves great success, rewards paid to data scientists will become substantial..

This project will be realized by leveraging the Ethereum public blockchain. We believe Ethereum is a groundbreaking concept and hope it will be adopted in other hard sciences as well. Please try it out and judge with an open mind.

New cryptocurrency to harmonize AI on Numerai

To promote the development of AI-driven hedge funds,1,000,000 crypto tokens issued to 12,000 data scientistsare outlined below.

Brokerage charity

The market moves smoothly not because someone intends to, but because those who trade in the market are not trying to make the market efficient. Efficiency is a byproduct valued by market participants who seek to earn money and grow it further through selfish actions.

Stockbrokers would want a world where efficiency is maintained forever to earn profits. Hedge funds would wish for a perpetual information asymmetry where data they don’t possess yields information fees. In the stock market, no one wants the market to be efficient.

The problem here is that selfish market participants who trade to maximize profits are not coordinating toward a single goal. They are antagonists who have no motive to cooperate, share knowledge, data, or code to improve the market. The economy is an inherently non-cooperative system, and that hampers frontline development.

You might think the problem lies with selfish market participants. The solution would be to regulate selfishness. However, regulating selfishness is morally questionable. The problem is not selfishness itself, but money itself.