cryptography | Crypto Fund: Tykhe Block Ventures Launches $30 Million Crypto Fund; Finding a 30% Tax Too High: Prashant Malik

As the adoption of crypto investments in India increases, crypto funds are becoming mainstream. Tykhe Block Ventures is an emerging local crypto firm that aims to manage $30 million by the end of the year.

“A slowdown in India’s cryptocurrency adoption could only increase the country’s brain drain,” he 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 firms 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 achieve 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 core infrastructure. We started privately, we only managed our own money, me and my partners collected $1.5 million and continued with our idea to invest in blockchain and web3 related frontier technology.

After being in operation for a full year, 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 are inviting investors to join us on this journey.

What are your plans for the future? Do you want to include retail investors or HNIs in your crypto investments? What is your vision and mission?
2021 has clearly been a breakthrough year for crypto assets, from institutional adoption to retail adoption, crypto has far surpassed 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 belief that blockchain technology is the future. With everything happening with DAOs, DeFi, NFT, Metaverse and Web3, we are excited to be a part of this ecosystem.

We envision a future with thriving multi-chain DeFi without liquidity bottlenecks and NFT that goes beyond art and extends to healthcare, virtual reality, asset ownership, device IOT and much more. We want to invest in and partner with forward-thinking companies who are just as excited about the future of blockchain, ready to break through bias or tradition, spin at lightning speed, and are capable enough to understand strategy and the 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 get 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 great with many ideas and new ideas brought into play with Web3 startups. I had to adapt and also learn a lot by venturing into this world that was super exciting. This space is still in its infancy and involves advanced technology where ideas and use cases change quickly and need to be kept up to date. It’s a really fun and fast paced tech space that got me excited for the future.

What are the fundamental investments of Tykhe’s ethics and aesthetics? What are the key boxes you see the most value in the crypto space? 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 more than 105 million people in India own crypto and more than 350 blockchain companies have been established in 2021 alone. I think it would be extremely helpful if people tried to use crypto outside of Bitcoin or Ethereum. It’s a wonderful frontier technology, it’s the biggest breakthrough after the Internet boom.

Given that you have extensive experience with a number of crypto companies, what is your take on India’s current tax policy? Do you think regulation is the need of the hour? What are your expectations?
India is not outright banning crypto as the first rumors suggested and taxing it is actually a good first step. However, a 30% tax on profits is high and will need to be reviewed in the future.

Also, the other aspects should be clarified so that Indian web3 founders can build products in India without worrying about the law. These need to be better defined to keep 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 rules all over the world? And how do you view and appreciate 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 UK have clear rules for owning and trading cryptocurrencies. It is only a matter of time before the rest of the countries follow suit. A slowdown in crypto adoption could simply increase the brain drain from India.

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