Summary
- AI tokens surged nearly 6% in the last 24 hours, pushing their total market cap to $29.4 billion.
- Numerai leverages crowdsourced trading signals, compensating data scientists with NMR tokens.
- JPMorgan’s potential investment highlights a rising interest in AI-focused crypto funds.
The token for Numerai, a cryptocurrency hedge fund utilizing artificial intelligence, experienced a spike in AI-centric digital assets on Wednesday after JP Morgan Asset Management announced a $500 million commitment to the project.
NMR saw gains of over 100% within the last 24 hours, trading near $23, according to data from CoinGecko.
The AI-token space increased by 5.8% in 24 hours, achieving a total market cap of $29.4 billion, as per CoinGecko. This rise occurred despite Nvidia reporting second-quarter earnings that fell short of expectations.
Notable gainers in the past 24 hours included Near Protocol (NEAR) up 1.5%, the Artificial Superintelligence Alliance’s token (FET) gaining 1.3%, and Internet Computer (ICP) increasing by 1%.
Established in 2015, Numerai aggregates market predictions from data scientists, rewarding leading models with its NMR token. It started with an encrypted online competition where participants predicted stock prices.
In hedge fund terminology, “capacity” indicates that an investor has reserved the option to allocate a specific sum to a fund, guaranteeing access even if the fund subsequently restricts new investments. It signifies a reserved allocation rather than an immediate transfer of funds. Over time, Numerai has secured prominent early backers, including Paul Tudor Jones, Naval Ravikant, and Howard Morgan, co-founder of Renaissance Technologies.
This Numerai agreement marks another shift for JPMorgan, whose CEO Jamie Dimon has historically expressed skepticism towards cryptocurrency. Dimon previously labeled Bitcoin a “fraud” and equated digital currencies to “decentralized Ponzi schemes.”
However, Dimon’s position has softened. During a May investor day, he stated that while he personally doesn’t endorse Bitcoin, JP Morgan would allow clients to purchase it. In June, the bank indicated its intent to explore crypto-backed lending and offer loans secured by clients’ digital-asset holdings.
JP Morgan Asset Management has not yet provided a response to a comment request from Decrypt.
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