“A delay in crypto-adoption in India could simply increase the country’s brain drain,” he said Prashant MalikFounder and General Partner at Tykhe Block Ventures. After a stay 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 perform? Do you invest for yourself or do you also manage funds for other investors? How big is your fund, and what percentage of return have you been able to reap so far?
We are an investment company for cryptocurrencies. We invest in companies and have 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 raised $ 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? Do you want to include retail investors or HNIs in your crypto investment? 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 see only a brighter future. At Tykhe, we have an extremely strong belief and belief that blockchain technology is the future. With everything happening with DAOs, DeFi, NFT, Metaverse and Web3, we are happy to be a part of this ecosystem.
We envision a future of thriving DeFi across multiple chains without liquidity bottlenecks and NFT that goes beyond art and extends to healthcare, virtual reality, asset ownership, IoT devices and more. We want to invest in and collaborate with forward-thinking companies that are just as excited about the future of blockchain, ready to break down biases or traditions, turn lightning fast and are able to understand strategy and native cryptocurrency. We start with HNIs first, but our ultimate goal is to make it very easy and flexible for retail investors to achieve crypto exposure.
How has Tykhe’s journey been so far? What was the motto and mantra? How would you rate this experience?
The journey so far has been fantastic with many ideas and new ideas that have been put into play with Web3 startups. I had to adapt and also learn a lot by venturing out 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 has to keep up with them. It’s a huge fun and fast-paced technology room that made me excited about the future.
What are the basic investments in Tykhe’s ethics and aesthetics? What are the key pockets you see most value in the crypto space? Any tips or advice for 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 set up in 2021 alone. I think it would be extremely beneficial if people tried to use crypto in addition to Bitcoin or Ethereum. It’s a wonderful frontier technology, it’s the biggest breakthrough after the internet boom.
Since you have extensive experience with a number of crypto companies, what is your view on India’s current tax position? Do you think rules are the need of the day? What are your expectations?
India does not directly ban crypto, as the first rumors suggested, and taxing it is actually a good first step. However, a 30% tax on winnings is high and will need to be reassessed 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 under Web 2.0.
Having a framework that supports this ecosystem and taxes will be a huge boost for India and its Web 3 entrepreneurs, developers and investors.
India and the whole world are having a heated debate about the regulation of cryptocurrencies. What is your opinion on that? Is it possible to have general rules all over the world? And how do you see and assess India’s position in particular?
Answer: We are seeing a change in cryptocurrency regulation as so many countries are preparing for this new technology. Both the United States and the United Kingdom have simple rules 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.