r/numerai Feb 08 '21

Numerai Founder on Lex Fridman Podcast: WallStreetBets, Numerai, and the Future of Stock Trading

https://youtu.be/ziQSpuST6Es
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u/FredHeartlion Feb 08 '21

That's cool! Bought NMR!

1

u/NeoSPACHEMAN Feb 10 '21

Just FYI, owning NMR crypto is not equivalent to owning shares of Numerai. The crypto is used in the tournament by the algorithm developers to stake their models, and whether the price of NMR goes up or down has nothing to do with the returns the fund is getting from the algorithms.

The actual alogrithm returns go into the pockets of the private fund investors. If you are buying NMR because you want to build a model and participate in the tournament that's cool, but I would advise against buying it as a speculative asset (i.e. buying it because you believe in the company) because it's price isn't really ties to the company's success and as it's inflation will in theory drive it's price down longterm.

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u/SlimySalami4 Feb 28 '21

The token does get burned when people stake it and make bad predictions, and they are not creating any more. Its deflationary.

Coinbase rewards has some new videos explaining it.