Numerai (NMR), an American prediction market startup and hedge fund has raised $11 million in an initial coin offering (ICO) to launch its project Erasure.
Numeraire network provides a blockchain and cryptographic token-based ecosystem for incentivizing anonymous data scientists to create predictive models. Based on the Ethereum (ETH) blockchain, Numeraire tokens are used in trading market predictions on the startup’s platform.
Richard Craib, Numerai founder, said the funds from the recent ICO will be mostly spent on hiring engineers for Erasure, the decentralized unit of Numerai’s marketplace.
Announced in October 2018, Erasure is reportedly scheduled to launch later in 2019. Once launched, Erasure will allow users to sell their predictions to any investment fund in the public network via the peer-to-peer InterPlanetary File System (IPFS), and directly connect their crypto wallets to the Ethereum-based marketplace.
Numerai-based prediction models are mostly focused on traditional assets for now but the launch of Erasure will enable predictions on any asset.
As a result of the news, the price of the Nomeraire token jumped almost 19 percent. The token is exposed to traders on Bittrex, UPbit, Poloniex, DDEX, and IDEX, and has a market capitalization of $7.7 million.