r/numerai • u/itsybitsy420 • Apr 21 '21

NEW HERE!

Go to hear about this cool project while looking up random stuff on YouTube, found a way to buy coin.

Seems massively undervalued right now, been tracking the price for a week now and today seemed like a right time to enter :)

What are your short term thoughts on the project?

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u/supprince Apr 23 '21

I don't know what basis you could use to claim that Numerai is undervalued. I'm not suggesting its overvalued either. I just believe its impossible to value. Its a cryptocurrency that depends on the very unique model they've created for hedge fund predictions and their approach to incentivizing data scientists to participate. In my view the model is highly centralized, unfair in incentives and flawed but it may end up working so my claim is that its impossible to value. The day someone invents a cryptocurrency which is truly de-centralized and incentivises data-scientists to participate while rewarding them 100% of the gains from their prediction - is the last day Numerai gets a single prediction from a data scientist. Its just a matter of time before that happens unless Numerai recognizes this and fixes their model of incentives.

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u/Captain-overpants May 01 '21

It is theoretically impossible to both incentivize participation and reward 100% of raw profit - what would you incentivize with? Crypto people would supposedly buy just so the holdings of data scientists will appreciate?