Reject ICO: hedge fund company Numerai skip financing steps issue block chain tokens

nnnnIn the past six months, ICO’s heat is getting higher and higher, but also led to a lot of criticism and questioning. In this case, hedai fund financial technology company Numerai in the issue of its own block chain tokens counterproductive, announced that ICO will not be carried out. The company says its tokens are associated with their core business and therefore have real value. This is called the current digital money market in a stream, causing people to explore other models of interest.n
nnTranslated by: Inan
nA new block chain tokens have been on the market on June 21, but people can not buy through ICO.n
nAt present, the so-called “first tokens issue” attack intensified, some people pointed out that this type of lightning financing model is not always the best way to stimulate the distributed economic network, therefore, a new generation of hedge fund startups Numerai issued this Token will make people see how other models are formed in the market gradually mature.n
nNumerai announced on June 21 that it had issued 1.2 million “numeraire” tokens, which had begun to be distributed to 19,000 data scientists in a distributed network where these data scientists helped to improve the use of information on the stock market Betting calculations.n
nNumerai was founded in 2016 and is funded by Union Square Ventures and founder of AngelList Naval Ravikant, which has raised $ 7.5 million. It has told the “wire” magazine that funds will be used to provide a solution for the lack of coordination and cooperation in the global stock market.n
nInitially, Numerai used Bitcoin as a method of paying the data scientist’s distributed network. However, it is starting from June 22 to start using the coin of the coin, and the coin is the arm of the tower that is used to encourage the user’s tokens.n
nNumerless software engineer Xander Dunn explained:n
nn”Today, we want to launch numeraire, it will become a real digital currency, the secondary market will be a valuable token.”n
nnSo, in the competition of many tokens, what makes numeraire worth? As Dunn said, there are several reasons, the first is that they are directly linked with the company’s core operations, that is, to collect data and predict the stock market results.n
nWhen data scientists want to lock a forecast, they can send numeraire to an intelligent contract, and then until the submitted forecast has the result, the funds will always be kept on the smart contract. Those who predict the accuracy of the person will get the currency, the numeraire is returned, and the predicted numeraire will not be destroyed.n
n”In a sense, numeraire was excavated by Numerai’s data and submitted to the forecast as a proof of effort,” the company wrote in a blog post in February.n
nPerfect moden
nThis feature, which links the tokens to the economic benefits of the project, distinguishes Numerai’s tokens from other zoning chains, which have aroused the interest of some of the earliest thought leaders in the emerging market.n
nPolychain Capital, although not involved in the recently very popular ICO, has shown interest in the Numerai token, even if it can not buy the token through any pre-sale. (There is no early investor due to the absence of financing activities).n
nRyan Zurrer, the head of the company, has been cautious about the token that tried to play a role like traditional securities.n
nZurrer evaluated Numerai’s plan,n
nn”It is amazing that people have to prove their ability to prove the token in the game.”n
nnAs Dunn explains, the token is designed to promote a virtuous circle that motivates the behavior that the network needs (such as the use of Numerai tokens, enters and exits the market) and prevents unwanted behavior (such as hoarding of coins).n
n”Data scientists want more numeraire, because they can win more money, so the bigger the bet, the more returns,” he said.n
nOf course, the benefits of positive returns are only that. That’s why Numerai is also making a “betting competition” that could make its users lose their digital assets, even though they are confident in their predictions.n
nEconomic changen
nHowever, the particularity that makes this economy work will require iterations.n
nDunn said in a conversation last week that it had not yet decided how many numeraire would be issued on the first day. He also agrees that the absolute ceiling of the $ 21 million token is somewhat arbitrary (just to ensure that the number of tokens is limited), which is neither scientific nor strategic.n
nIn general, these comments indicate that the current development period may continue because the start-up companies are trying to figure out how to most effectively motivate the user’s distributed network.n
nNumerai has changed the reward, before the first prize may win $ 1,000, but on June 11, the amount has fallen to $ 400, $ 353 for the second, $ 312 for the second, and $ Part of strategic change.n
nCEO Richard Craib wrote in an article: “We think it will better motivate data scientists to build a reliable model.”n
nNevertheless, the company hopes to maintain an open mind and maintain a cooperative dialogue with the user, and strive to expand after the release of the model.n
nCraib also said: “It is still difficult to predict the interaction between speculators, exchanges, numeraire prices and data scientists, so we will change the mechanism in learning.”n
nCurrent situationn
nIn the future, the release of the first digital tokens will add another operation to the company.n
nThus, Dunn said optimistically that the token will now benefit the group it serves – data scientists are improving their trading results. However, given the recent rise in the value of coins, he also evaluates Numerai if it is too high, although he thinks it is impossible.n
nHe commented: “Because the digital money is now too hot, we will joke that these people will make a lot of money.Some people even if the money will come back, but the vast majority of the world’s data scientists have never used numeraire “n
nAt present, speculation will affect how the secondary market of tokens remains to be seen. As for the market forecast, Dunn suggested that each Numerai token value of $ 15, or market value of $ 30 million.n
n”I think it is entirely possible,” he said.n
nIn view of the introduction of some new tokens will reach $ 1 billion market value, this figure is still relatively conservative.n

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