Crypto Conversation: For Numerai, Trust Is More Than a Token Gesture

Flipside Crypto talks about the hottest news in cryptocurrency this week, the Numeraire token, NMR.
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What's hot in crypto this week? 

It's the Numeraire token, NMR. Numerai launched in 2015 as a hedge fund that uses crowd-sourced data science techniques to fuel its investment strategy. The team created the token, NMR, in 2017 for data scientists to stake and compete in Numerai’s monthly tournaments. 

NMR was launched as an ERC-20 token on the Ethereum blockchain. In 2018, its maximum supply was cut in half to promote decentralization. Last year the team sold $11 million in tokens in a round led by the crypto-focused investment firm Paradigm and the venture capital firm Placeholder.  


The Numerai team on March 10 launched Erasure Bay, a marketplace for trustworthy information. Users can either buy information or get paid for providing it. The key difference with a normal trade is that money is only exchanged if the information matches what the buyer wanted. That’s not all. The seller can even lose money for sharing spam or bad information.  

How has NMR’s scores changed?

NMR FCAS climbed 71-points (10.22%) in the past two weeks, due to a 76-point (10.8%) spike in Developer Behavior and a 75-point (10.72%) climb in User Activity. Market Maturity also increased 46-points (6.53%). You can use the FCAS Tracker to view NMR’s FCAS history.


What's Flipside's take?

The spike in user activity we’re witnessing suggests that there is both demand and supply for this type of marketplace. Not only does it provide access to data and information that would otherwise be hard to find, but the new incentive mechanism also enforces trust without reputation. This opens the door for lesser known sources to share knowledge. 

Staking has worked as a quality mechanism for Numerai in the past, as part of their data science tournament. In creating Erasure Bay, Numerai is building a generalized version of that mechanism to apply beyond stock market predictions.

The Erasure protocol could even change the way we date. On the protocol’s homepage,, the use case is clear: staking for online dating where you can burn the other person’s stake if they ghost you, show up late, or turn out to be super rude.

The Flipside Crypto Asset Score Tracker provides institutional and sophisticated retail investors the ability to track over 500 cryptocurrencies' fundamentals. FCAS Tracker is currently free to a select group of new users as it continues to develop the product. Visit Flipside here to gain access to Flipside Analytics.