Numeraire and Predictoor Partner to Discover Advanced Crypto Prediction Models
The companies have launched a data competition focused on cryptocurrency predictions, with a $20k prize pool. Results could provide valuable insight for investors.
Numeraire has formed a strategic partnership with Ocean Protocol’s Predictoor to explore and enhance cryptocurrency prediction models. Together, they have launched a data challenge focused on crypto factor modeling, offering a prize pool of $20,000.
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Crypto factor modeling is a financial and statistical method used to understand and predict the returns of cryptocurrencies by analyzing key underlying factors. Much like traditional financial markets, this approach identifies and examines various elements that affect the performance of digital assets. These factors can include macroeconomic variables, industry-specific characteristics, and other elements impacting the market.
Numeraire, founded in late 2016 in San Francisco, operates a hedge fund built on a blockchain platform that incentivizes data scientists to create predictive models. This platform hosts competitions where participants develop machine-learning models to forecast stock market trends. Numeraire provides high-quality data for training these models, enabling scientists to submit their own models and make daily predictions.
In this competition, participants can demonstrate their confidence by staking $NMR tokens on their predictions. Accurate predictions earn them rewards in $NMR, while incorrect ones lead to the loss of their stakes.
The platform has proven profitable, with over 7,000 staked models achieving an average 1-year return of 53.18%, some even reaching returns in the thousands of percent, with a total of 664,500 $NMR staked, valued at approximately $8.6 million.
Originally focusing on stock markets, Numeraire has recently expanded to include cryptocurrency predictions. Realizing the vast and underexplored potential of crypto markets, they partnered with Oceans Protocol’s Predictoor, which specializes in this area.
The project gathers crypto prediction feeds from its users, who stake $OCEAN on their forecasts. It rewards accurate predictions and penalizes incorrect ones, ensuring only the most reliable contributors prosper. Predictoor uses the privacy-preserving features of the Oasis Sapphire chain under the Ocean Protocol to maintain prediction confidentiality.
Predictor has a live dApp at predictoor.ai, facilitating up/down predictions for the prices of BTC, ETH, and other tokens. The dApp helps users build a mental model of Predictoor’s behavior. Interestingly, all active bots on the platform have an accuracy score of over 50%, meaning they are generally profitable, earning more than they lose.
The announced competition will start on July 27th and conclude on August 27th. Numeraire and Ocean Protocol will then assess the submissions, focusing on their quality, thoroughness, and impact. The winners’ research will be published, potentially providing valuable insights for the wider crypto community and assisting crypto hedge funds in refining their investment strategies.
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