“A delay in crypto adoption in India could simply increase the country’s brain drain,” said Prashant MalikFounder and General Partner at Tykhe Block Ventures. After a stint at Meta (formerly Facebook), Prashant Malik co-founded the Limeroad e-commerce platform. He was an early investor/advisor in crypto companies such as CoinSwitch, Neo Banj Juno, and Bluzelle. Edited excerpts from an interview:
What kind of work does Tykhe Block Ventures do? Do you invest for yourself or do you also manage funds for other investors? How big is your fund and what percentage return have you been able to reap so far?
We are a crypto-asset investment company. We invest in companies and hold liquid investments in the blockchain sector with a focus on decentralization technologies, digital assets and their key infrastructure. We started privately, we only managed our own money, me and my partners pooled $1.5 million and continued with our idea of investing in blockchain and web3 related frontier technology.
After a full year of operation, we currently have approximately $10 million in assets under management. With this proven success behind us, we are now in the process of launching a $30 million fund, where we invite investors to take this journey with us.
What are your plans for the future? Are you looking to include retail investors or HNIs in your crypto investing? What is your vision and mission?
2021 has clearly been a breakthrough year for crypto assets, from institutional acceptance to retail adoption, crypto has far exceeded any other period in its history. With the legalization of crypto in India, we only see a brighter future. At Tykhe, we have an extremely strong belief and conviction that blockchain technology is the future. With everything happening with DAOs, DeFi, NFT, Metaverse and Web3, we are excited to be part of this ecosystem.
We envision a future with thriving DeFi across multiple chains without liquidity bottlenecks and NFT going beyond art and extending to healthcare, virtual reality, asset ownership, devices IOT and much more. We want to invest in and partner with forward-thinking companies that are equally excited about the future of blockchain, ready to break down bias or tradition, pivot at lightning speed, and are capable enough to understand strategy and native crypto culture. We’ll start with HNIs first, but our end goal is to make it very easy and smooth for retail investors to gain crypto exposure.
How has Tykhe’s journey been so far? What was the motto and the mantra? How would you rate this experience?
The journey so far has been amazing with many ideas and new ideas being put into play with Web3 startups. I had to adapt and also learn a lot by venturing into this world which was super exciting. This space is still in its infancy and cutting edge technology is involved where ideas and use cases change rapidly and one needs to keep up with them. It’s a hugely fun and fast-paced tech space that got me excited for its future.
What are the fundamental investments of Tykhe’s ethics and aesthetics? What are the key pockets you see the most value in the crypto space? Any tips or advice to our readers or existing crypto investors?
We always focus on companies that promise to shape the future of Web3 and blockchain technology. Some of the key areas that we follow religiously are Blockchain Infrastructure, Smart Contracts or Layer 1s, NFTs, Games and Metaverse, and Decentralized Finance.
Research shows that over 105 million people in India own crypto with over 350 blockchain companies created in 2021 alone. I think it would be extremely beneficial if people tried to use crypto beyond Bitcoin or Ethereum. It is a wonderful frontier technology, it is the greatest breakthrough after the internet boom.
As you have extensive experience with a number of crypto businesses, what is your view on India’s current tax stance? Do you think regulations are the need of the hour? What are your expectations?
India is not outright banning crypto as initial rumors suggested and taxing it is actually a good first step. However, a 30% tax on gains is high and will need to be reviewed in the future.
Also, the other aspects need to be clarified so that Indian web3 founders can build products in India without worrying about the law. These need to be better defined in order to retain this talent in India and not see what happened during Web 2.0.
Having a framework that supports this ecosystem and taxes will be a big boost for India and its Web 3 entrepreneurs, developers and investors.
India and the whole world are having a heated debate over the regulation of crypto assets. What is your opinion on that? Is it possible to have general regulations across the world? Also, how do you view and assess the position of India in particular?
Answer: We are seeing a change in crypto regulation, with so many countries preparing for this new technology. Both the US and the UK have straightforward regulations for owning and trading crypto. It is only a matter of time before the rest of the countries follow suit. A delay in the adoption of crypto could simply increase the brain drain from India.
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Crypto | Crypto Fund: Tykhe Block Ventures Launches $30 Million Crypto Fund; Finding a 30% tax too high: Prashant Malik
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