tykhe: Tykhe Block Ventures launching a $30-mn crypto fund; finding 30% tax too steep: Prashant Malik

Synopsis

“India is not banning crypto outright like the initial rumors suggested and actually taxing it is a good first step. However, 30 per cent tax on the gains is steep and will need to be revised in the future. Also, the other aspects need clarity for Indian web3 founders to 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.”

ETMarkets.com

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As the acceptance of crypto investment rises in India, crypto funds are getting mainstream. Tykhe Block Ventures is an emerging homegrown crypto firm which aims to manage $30 million by the end of the year.

“A delay in adoption of crypto in India may just increase brain drain from the country,” said Prashant Malik, Founder and General Partner at Tykhe Block Ventures. After a stint in Meta (formerly Facebook), Prashant Malik co-founded the e-commerce platform Limeroad. He has been among the early investor/advisors in the 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 manage funds for other investors as well? How big is your fund and how much return, in percentage terms, have you been able to reap so far?
We are a crypto-asset investment firm. We invest in ventures and hold liquid investments within the blockchain sector with a focus on decentralisation technologies, digital assets and their key enabling infrastructure. We started private, we were only managing our own money, me and my partners pooled in $1.5 million and we went with our idea of investing in frontier tech related to blockchain and Web3.

After a full year of operation, we currently have around $10 million in AUM. With this proven success behind us, we are now in the process of launching a $30 million fund, where we are inviting investors to take part in this journey with us.
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What are your plans for the future? Are you looking to include retail investors or HNIs in your investment in the cryptos? What is your vision and mission?
2021 was clearly a breakthrough year for crypto assets, from institutional acceptance to retail adoption, crypto has far surpassed any other period in its history. With India legalizing crypto, we only see a better future ahead. At Tykhe, we have an extremely strong belief and a conviction that blockchain technology is the stuff of 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 DeFi thriving across multiple chains without liquidity bottlenecks and NFTs going beyond art and expanding into healthcare, virtual reality, asset ownership, IOT devices and so much more. We want to invest in and partner with visionary companies which are equally excited about the blockchain future, who are ready to break the bias or traditions, pivot at lightning fast speeds and who are capable enough to understand the crypto native strategy and culture. We will first begin with HNIs but our eventual goal is to make it very easy and smooth for retail investors to get some crypto exposure too.

How has the journey of Tykhe been so far? What has been the motto and mantra? How would you rate this experience?
The journey so far has been amazing with a lot of insights and new ideas coming into play with Web3 startups. I have had to adapt and also learn a lot as I ventured into this world which has been super exciting. This space is still in infancy and bleeding edge tech is involved where ideas and use cases change quickly and one has to keep up with these. It’s an extremely fun and fast spaced space of tech that has got me excited about the future of it.

What are the core investments of ethics and aesthetics of Tykhe? What are the key pockets that you see most value in the crypto space? Any advice or guidance to our readers or existing crypto investors?
Our focus is always on ventures that promise to shape the future of Web3 & blockchain technology. Some of the key areas that we religiously follow are Blockchain infrastructure, Smart Contracts or Layer 1s, NFTs, Gaming and Metaverse and Decentralised Finance.

Research shows that over 105 million people in India own crypto with over more than 350 blockchain companies being set up in 2021 alone. I think it would be supremely beneficial if people try to use crypto beyond Bitcoin or Ethereum. It is a wonderful frontier tech, it is the biggest advancement after the internet boom.

As you come with a wide experience with a number of crypto firms, what is your take on India’s current stance on taxation? Do you think the regulations are the need of the hour? What are your expectations?
India is not banning crypto outright like the initial rumors suggested and actually taxing it is a good first step. However, 30 per cent tax on the gains is steep and will need to be revised in the future.

Also, the other aspects need clarity for Indian web3 founders to 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, it will be a big boost for India and its Web 3 entrepreneurs, developers and investors.

India and the entire world is having a heated debate on regulations of the crypto assets. What is your take on it? Is it possible to have blanket regulations across the world? Also, how do you see and rate the stand of India in particular?
Ans: We see a shift in crypto regulations, with so many countries warming up to this new technology. The US and UK both have straightforward regulation for owning and trading crypto. It’s only a matter of time before the rest of the countries follow suit. A delay in adoption of crypto may just increase brain drain from India.

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Updated: 05/05/2022 — 02:00