Hedge fund Numerai has announced closing on an $11 million investment from Placeholder and Paradigm. Numerai will use the funds to develop its Erasure protocol which facilitates the transaction of high-quality data feeds. According to CoinDesk, Numerai is also planning to expand the engineering team in order to launch the Erasure protocol.
The protocol is connected to Numerai's decentralised data marketplace for predictions that goes by the same name. Users can stake their Numeraire tokens against predictions. According to Numerai, the NMR has already become one of the most-used tokens on the Ethereum network—it has been staked more than 39,000 times.
In order to assure the investment went directly to fund the protocol, both investors purchased NMR, CoinDesk writes.
“By decentralizing the revolutionary ideas behind Numerai, Erasure is fundamentally changing the structure of the investment business,” said Joel Monegro, partner at Placeholder. “We’re excited to be a part of the Numerai community and to be participating in this transformation.”