American prediction market startup and hedge fund Numerai (NMR) minces $11 million in an initial coin offering (ICO) to launch its project Erasure. The round was led by Paradigm and Placeholder.
Since its introduction in late 2016, the Numeraire network provides a blockchain and cryptographic token-based ecosystem that incentivizes anonymous data scientists for creating predictive models. Numeraire tokens are based on the Ethereum (ETH) blockchain and are used in trading market predictions on the startup’s platform.
Reportedly, the ICO was led by VC and private equity firm Placeholder, and crypto investment company Paradigm, founded by Coinbase co-founder Fred Ehrsam. The platform shared the announcement on Twitter:
Numerai just raised $11million from Placeholder and Paradigmhttps://t.co/Jvh4kPOX2J
— Numerai (@numerai) March 21, 2019
Richard Craib, founder of Numerai stated in the Coindesk report that the funds raised in the latest ICO are aimed at hiring engineers for Erasure, the decentralized unit of Numerai’s marketplace. Erasure was announced in October 2018 and is reportedly scheduled to launch later in 2019.
Craib told Coindesk that upon its launch, Erasure will enable its 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. Where the Numerai-based prediction models are mostly focused on traditional assets, the launch of Erasure will enable predictions on any asset.
When the news was announced, Nomeraire token experienced a price as it jumped almost 19 percent, trading at $5.77 at press time, according to data from CoinMarketCap. The token currently trades on Bittrex, UPbit, Poloniex, DDEX, and IDEX, and has a market capitalization of $7.7 million.
In similar news, the token platform of crypto exchange Binance, Binance Launchpad, completed a $4 million sale of Celer Network (CELR) tokens in under 20 minutes.