Numerai, a hedge fund and information marketplace, has closed its second native token NMR fundraising round at $3 million.
The fundraising round saw participation from CoinFund, Union Square, Placeholder, Ventures, and Dragonfly Capital.
The first token sale was conducted in March last year, raising $11 million with its fundraising round being led by Paradigm and Placeholder. A majority of the funds raised in the first round were utilized to build the hedge fund.
Numerai is also known for hosting tournaments for data scientists who help the firm find the best trading strategies for the hedge fund. The firm stated that a portion of the raised funds would be utilized to develop their other venture Erasure which is a popular defi information staking protocol and 17th largest Dapp.
Currently, $2.1 million worth of tokens are locked in the information staking protocol which is primarily used for its data scientist tournaments along with its marketplaces Erasure Quant and Erasure Bay.
Erasure Bay is Numerai’s latest initiative, which launched back in March this year to make the interaction between the user and the platform simpler. This new marketplace makes it easier to exchange information before people could only submit predictions related to the equity market, but with Erasure Bay now they can do so.
Richard Craib, the founder of Numerai who was also one of the investors in the fundraising round commented on the success of the token sale and said:
“[This fundraising] gives us a lot more money that goes directly to developing Erasure and increasing the number of stakes, increase the users, and letting the protocol be used all over the Internet,”
Talking about the Erasure Bay, he said:
“Erasure Bay is demonstrating that you can trust other people online if they’re willing to put some cryptocurrency at stake and let you burn it if they misbehave. We did not expect all these weird use cases but we’re into it.”