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RE: AiCoin - Machine Learning Crypto Hedge Fund (ICO closing TODAY on midnight: Monday 28th of August)
Thanks for sharing. Can you explain how this differs from Numer.ai (NMR)?
Thanks for sharing. Can you explain how this differs from Numer.ai (NMR)?
Certainly.
Numer.ai is playing a different market for starters. AiCoin focuses on trading cryptocurrencies as well as making VC like investments in very early staged start-ups, as such they differ quite drastically.
Since Numer.ai is focused on the stock market, it does not have access to the type of start-ups that AiCoin does and can only invest in firms that trade on the public stock exchange. Stocks in general have a far lower volatility than cryptocurrencies and they exclude the "ultra-high" reward type of investments that venture capitalists play in.
Another thing to watch out for with Numer.ai is the fact that stock markets are not nearly as inefficient as they claim. In fact, stock markets are very mature and Machine Learning / Data Science has been applied to them for years now.
The biggest traditional hedge funds have hundreds of millions and sometimes even billions of dollars at their disposal and are thus in a position to throw overwhelming amounts of resources at hardware, software optimization and big data algorithms. And they have been doing this for a while. As such, I have severe doubts about Numer.ai being capable of reasonably competing with these big players in the stock market and there have been hedge funds that attempted to play the data science game in the stock market with no success.
I am certainly not saying that Numer.ai is incapable of competing, but it is highly unlikely given the maturity of the stock market and the overwhelming resources of its participants, which include the world's largest hedge funds and investment banks.
AiCoin on the other hand focuses on a new market, namely cryptos for its trading portfolio. This market is indeed new and highly inefficient with very few big players having dedicated the type of resources that would make Machine Learning trading highly successful.
On top of that, AiCoin offers the opportunity to participate in Venture Capital investments through its investment pool (this happens automatically for token holders), which is a highly profitable field that the majority of people on this planet wouldn't get access to even if they tried.
Becoming a VC investor normally requires very large amounts of capital, while AiCoin offers the opportunity to participate in that market with literally any amount of money.
The documentation that Numer.ai offers is also very lackluster to me as a Mathematician/Statistician. The information provided is very basic and could be written up by a person that has taken a free online course in data science or statistics.
While it's certainly possible that Numer.ai chose to keep technical information brief on purpose (since most investors wouldn't properly understand the details anyways), I could not find anything that got me personally interested.
In short: Numer.ai trades stocks and has to compete against multi-billion dollar corporations, hedge funds and investment banks.
AiCoin trades cryptocurrencies and offers the unique opportunity to participate in venture capital investments for the anyone and any amount of money, while currently having no comparable counterpart/competition in the field.