From his childhood living in a ghetto on the east bank of the Yamuna river in Dehli to launching the $6-billion Polygon blockchain, Sandeep Nailwal has an incredible rags-to-riches tale.
Now happily ensconced in the futuristic, air-conditioned cityscape of Dubai, he tells Magazine he was born in a farming village in 1987 with no electricity called Ramnagar in the foothills of the Himalayas.
His parents married as teenagers and then packed up home when Nailwal was just four to try their luck in Dehli. They wound up in the poor settlements on the east banks of the river, often dismissively referred to as Jamna-Paar.
“Imagine the Bronx in New York,” Nailwal says. “It was like a tier-three area. Even now, when you go there is a very kind of ghetto-ish area.”
An image of part of the Jamna-Paar area in Dehli. (thecitizen.in)
He remembers lots of cows roaming the roads and illegal guns, though he says knives were the weapon of choice. “When stuff needs to be done, then knife is the best tool,” he says of the attitude.
The Oscar-winning film ‘Slumdog Millionaire’ was renamed in India. Crore equates to 10 million rupees. (Amazon)
Nailwal didn’t attend school until he was five, in a country and period where many schools accepted children as young as two and a half, mainly because his parents didn’t know any better.
“My father and mother both were kind of like illiterate people; they did not even realize that the kid should be sent to a school after three years or whatever. So, somebody in my area who used to have a small school said: ‘Why is your kid not going to school?’ And then I started going to school.”
He waves at an ordinary-sized room behind him in Dubai, saying the school was “almost the same size” with 20 kids crammed in. Home life wasn’t much better.
“My father became an alcoholic and got into gambling. So, he would make like $80 to $90 a month, and out of that, generally many times, he would lose all of it,” says Nailwal. As a result, the family was often behind on paying the school’s monthly fees, “so they will make you stand outside, and it’s basically a very traumatic experience as a kid.”
Experiences like that in his formative years helped Nailwal understand the kind of man he didn’t want to be and forge his determination to succeed. Now the head of his own family, with a young child named Adi, he says becoming a dad made him reflect on how he hopes to do things better than his own father. But the conversation takes a surprising turn when Nailwal reveals he was actually thrust into a paternal caring role, looking after his baby brother when he was just 10.
“I would say in a way, my first son is my own brother,” he says, his voice becoming thick with emotion. “So, basically, when he was very young, he met with an accident at that point in time. So, I would say that’s where my childhood ended basically because I had to take care of him.”
Young entrepreneur
Nailwal got his start in business as a teenager, selling pens from a friend’s shop at a decent markup in school and tutoring other students. After he graduated, he hoped to take an insanely competitive engineering exam for the Indian Institutes of Technology (IIT) but couldn’t afford the extra tuition he needed to get an edge among “1 million students fighting for around 5,000 seats.”
He ended up getting accepted into the tier-two MAIT college in Dehli and took out a loan to put himself through a computer science and engineering degree.
Supremely ambitious and possibly a tad overconfident, he saw his future going down two possible paths based on two notable role models: Either join a company and work his way up to become “global CEO” like PepsiCo’s Indra Nooyi or start up a revolutionary internet business like Mark Zuckerberg did with Facebook.
“I was inspired by all this hype around Facebook in 2004, 2005,” he says, recalling the intense media coverage of Zuckerberg in India at the time. “I said to myself — and it was very stupid at that time — like I want to build my own Facebook. That’s why I chose computer science.”
Sandeep Nailway in Cointelegraph Top 100 2023. (Cointelegraph)
During his university degree, his talents in data analysis saw him get a gig working on electorate analysis work for the regional BJP party — now India’s ruling party. After a short stint in the workforce after university, he returned to study at the National Institute for Training in Industrial Engineering (now the Indian Institute of Management) to get his MBA, where he met his wife, Harshita Singh.
Although a highly regarded employee at Deloitte, and then Welspun textiles, where he was quickly promoted to head of technology for e-commerce, Nailwal never stopped working on his own projects. He’d spend all day at work, then go home and work on projects like a GPS-based system to optimize cargo vehicle deliveries or a B2B service platform for project management.
Nailwal says he felt he wasn’t able to pursue a startup full-time, as he felt cultural pressure and a responsibility to get his family out of the one-bedroom rental they were in and into their own home. And nobody would give a home loan to a 27-year-old with intermittent income from a fledgling business.
But Harshita one day said, “You will never be happy this way,” he recalls. “She said, ‘I don’t care about my own house; we can stay and rent.’ That was a very big burden away from me.”
In his last month of work, he borrowed $15,000 so he could afford to pay for a wedding one day, and then started to work on the B2B services marketplace full time, which he ran for a year until he realized it would never scale up the way he wanted.
Bitcoin revolution
Instead, he looked to get into “deep tech,” first considering then abandoning AI as it was beyond his mathematical abilities. Bitcoin was starting to get some press at that time due to the upcoming halving in 2016.
Nailwal had heard about Bitcoin back in 2013 but initially wrote it off as “some sort of Ponzi scheme.” After discovering it had lasted the distance, he thought it worthy of further investigation. Reading the “beautifully written” white paper, he realized:
“Oh, this is big — this is the next revolution of humanity.”
Converted, he was desperate to get “skin in the game” and, over the next three months, tipped the $15,000 wedding loan into Bitcoin at $800 a piece. Looking back, he says it was an insanely risky move given his finances at the time.
“The level of FOMO I had, it would have been exactly the same if I was one year late. And I would have done the same thing at $20,000. Yeah, and I would have lost all that money, and it would have been really, really problematic for me.”
But as a builder, he wanted blockchain to be about more than just payments, which led him to Ethereum’s full programmability. “I was like this is the thing, this is the thing I want,” he says.
Sandeep Nailwal and Anurag Arjun in the early days of Matic. (Twitter)
Throwing himself into the space, Nailwal founded a blockchain services startup called Scope Weaver in 2016 and became well-known as a moderator on local Ethereum forums. That’s where he met a “hardcore programmer” named Jaynti “JD” Kanan, who kept suggesting he spend his $400,000 Bitcoin stash investing in his startup ideas.
Initially, Nailwal wasn’t keen, but then Ethereum started to struggle with its own popularity during the 2017 bullrun, most notably after a 600% increase in transaction fees from CryptoKitties made the blockchain all but unusable.
Kanan suggested they work on fixing Ethereum’s scaling problems by developing the layer-2 Plasma technology proposed by Vitalik Buterin and Joseph Poon in August that year, which helped offload transactions to faster and less crowded side chains. Nailwal agreed and helped raise $30,000 in seed funding to build a product, with Anurag Arju joining as another co-founder and Matic Network officially launching in early 2018. The project was bootstrapped on the smell of an oily rag. All up, he says, the Matic Network survived for its first two years on $165,000 of total funding.
Rewinding to August 2018, we delve into an insightful discussion with Sandeep Nailwal, CEO of Polygon Labs, who foresaw the potential of $MATIC in its infancy.
Sandeep’s foresight was evident as he led conversations on crypto interoperability way back… pic.twitter.com/k2hGBmn2wO
Having watched endless projects raise millions with vaporware initial coin offerings, the team was determined not to launch a token sale until they had a product.
They would come to regret this decision bitterly. Launching directly into the great crypto market crash of early 2018, the ICO market was strong for a few months after but petered out by the time their runway was growing short.
“We kind of ignored that opportunity,” he says. “Which was really, really painful later on.”
“We had this huge opportunity of raising $10 million. We left it; we did not do it. And now we have no money to build. I remember that one time I had to almost beg one of the other founders of one project from India to grant us $50,000 so that we can run for three more months.”
Shortly before his marriage, Nailwal traveled to pitch to a Chinese fund that seemed keen to invest $500,000 in the struggling project. He recalls being delighted two days before his marriage, with a house full of guests, that everything was going to be OK.
His wedding to his wife Harshita Singh. (Facebook)
“Everybody’s happy, and I’m also content that we will get $500,000 now (for Matic Network), and suddenly, Bitcoin goes from $6,000 to $3,000. That fund after that simply said, ‘No, we will not invest now because we were going to invest 100 BTC; now the value is half, so we are not investing.’”
Even worse, the project’s treasury was still in Bitcoin and had also halved in value.
“That was a very traumatic experience for me around that point because I should not have speculated on this money, which is the company’s Treasury,” he says, meaning that he should have cashed out or turned it into stablecoins.
“So, I was really angry at myself, and this thing went away. By that time, we had like seven, eight, 10 people [in Matic]. They are also [attending] my marriage, and we are enjoying it and all that but deep down, I know that ‘shit, we might not have this team in the next two, three months.’”
His wedding to his wife Harshita Singh. (Facebook)
Binance is actually diligent
Toward the end of 2018 and early 2019, the opportunity came up to raise funds in an initial exchange offering on Binance Launchpad. While the U.S. Commodity Futures Trading Commission thinks Binance is a bunch of cowboys who will accept any old bus pass as Know Your Customer verification, Nailwal says the exchange’s due diligence was possibly too diligent.
“Nobody believed that there could be a protocol coming from Indian co-founders. And there were two or three projects which turned out to be scams, and everybody was very wary,” he says. Matic ended up going through eight months of evaluation before getting the nod to raise $5.6 million in $300 lots to the winners of a ballot.
Nailwal says, “At that point in time, $5 million was a very good amount.”
“If Binance had said, ‘You can raise $1.5 million or $1 million,’ we would even settle for that because we had a struggle for survival. But once we launched on Binance, things became much better.”
That marked a turning point for Matic, which survived the 2020 pandemic market crash and grew from fewer than 1,000 daily users at the end of that year to surpass Ethereum’s user numbers with 550,000 in October 2021. It also flipped Ethereum’s transaction numbers that year, too. Rebranding as Polygon, it surged from a market cap of $87 million at the start of 2021 to almost $19 billion by the end of the year.
Nailwal was now one of the richest and most successful people in the cryptocurrency industry. But he wasn’t satisfied, by a long shot.
“Being in top 10, top 15 projects brings no satisfaction to me. It’s very clear in my mind that I want Polygon to have that kind of impact which Ethereum and Bitcoin have had.”
Look out for part two, which tells the story of how Polygon became one of the key players in the space and Nailwal’s plans to make it a top-3 project.
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Andrew Fenton
Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.
Sir Keir Starmer has backed his under-fire safeguarding minister to continue leading the government’s efforts to set up a national inquiry into grooming gangs after four survivors demanded her resignation.
The prime minister said on Thursday that Jess Phillips has “devoted vast parts of her life and career” to tackling violence against women and girls, and has “confidence in her”, despite the turmoil that has beset the process.
All four survivors who quit the government’s grooming gangs inquiry panel said they will consider returning to the process if Ms Phillips resigns.
However, five other survivors on the panel have written to Sir Keir to say they will only stay if Ms Phillips remains.
They said she had remained impartial, had listened to feedback and her previous experience to reduce violence against women and girls and her “clear passion and commitment is important to us”.
In contrast to the four who have quit, who accused Ms Phillips of trying to expand the inquiry’s scope beyond grooming gangs, the five said it needs to be widened to focus on child sexual exploitation as a whole to ensure survivors who do not fit “the generalised stereotype” are not excluded.
More on Grooming Gangs
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In response to the demand for Ms Phillips to quit, Sir Keir said: “The safeguarding minister has huge experience in issues relating to violence against women and girls. She’s devoted vast parts of her life and career to that, and so I do have confidence in her and Louise Casey in leading this project.”
Speaking to ITV Meridian, the prime minister also sought to reassure the victims of grooming, saying: “It’s really important that the national inquiry gets to the truth. All survivors deserve answers to their questions.”
“It is very important that I say to all survivors that I give my personal assurance that this inquiry will go wherever it needs to go, the scope will not be changed.”
It is understood Downing Street has reached out to the four survivors who quit the government’s process this week.
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2:14
Starmer defended Phillips at PMQs on Wednesday
Samantha, one of the survivors who wrote the letter saying they would only stay if Ms Phillips remains, told Sky News: “We shouldn’t be falling apart right now, we should be working together.
“Jess has only ever been fair and honest with us, she’s told us as much as she possibly can within her capacity.
“She’s provided a lot of support over the phone and in-person to a lot of us survivors behind the scenes, which people don’t see about Jess.
“So I do still want her to be part of this inquiry up until the end.”
A government source told Sky News the government will be talking to all survivors on the panel about their concerns and opinions on the type of person they want to chair the inquiry, after the leading candidate dropped out following concerns from survivors over his background as a police officer.
The government will move as fast as possible, they said, but it will likely take months to appoint the right chair.
Why four survivors quit the inquiry
The four women who resigned this week expressed concerns about how the process of selecting a chair and setting the terms of reference of the national inquiry into grooming gangs is being run.
They wrote on Wednesday to Home Secretary Shabana Mahmood, calling for Ms Phillips to step down and all survivors to be consulted on appointing a senior judge as chair with no major conflicts of interest.
Ms Phillips told parliament on Tuesday that suggestions that the scope of the inquiry was to be expanded from just grooming gangs were “categorically untrue”.
But leaked consultation documents and texts between the safeguarding minister and survivor Fiona Goddard show the survivors’ concerns that the scope would be expanded were valid.
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10:14
Shadow Housing Secretary Sir James Cleverly told Sky News that he can’t see how Jess Phillips can stay in post
The survivors’ letter says: “Being publicly contradicted and dismissed by a government minister when you are a survivor telling the truth takes you right back to that feeling of not being believed all over again.
“It is a betrayal that has destroyed what little trust remained.”
They have demanded that the scope of the inquiry remain “laser-focused” on grooming gangs and called for victims to be free to speak to support networks without fear of reprisal.
Image: Fiona Goddard and Kemi Badenoch speaking during a press conference earlier this year
Pic PA
The letter to Ms Mahmood says: “Her [Ms Phillips’] conduct over the last week has shown she is unfit to oversee a process that requires survivors to trust the government. Her departure would signal you are serious about accountability and changing direction.”
The survivors describe their demands as “the absolute bare minimum for survivors to trust that this inquiry will be different from every other process that has let us down”.
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7:02
Minister for Children and Families, Josh MacAlister told Sky News Jess Phillips will not be resigning
Frontrunner quits over ‘toxicity’
The letter was sent hours after one of the frontrunners to become chair of the inquiry withdrew, blaming “vested interests” and “political opportunism and point-scoring”.
Ex-police chief and child protection specialist Jim Gamble told the home secretary in a letter there was a “highly charged and toxic environment” around the appointment process and victims “deserve better”.
The other, Annie Hudson, a former social worker, said earlier this week she no longer wanted to be considered after intense media coverage.
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18:19
‘Everyone should park their interests’
The prime minister launched the inquiry into grooming gangs after an audit by Baroness Louise Casey showed the scale of the problem.
It is understood that the government is exploring a range of other candidates and will provide an update in due course.
A Home Office spokesperson said: “The grooming gang scandal was one of the darkest moments in this country’s history.
“That is why this government is committed to a full, statutory, national inquiry to uncover the truth. It is the very least that the victims of these hideous crimes deserve.
“We are disappointed that candidates to chair that inquiry have withdrawn. This is an extremely sensitive topic, and we have to take the time to appoint the best person suitable for the role.
“The home secretary has been clear – there will be no hiding place for those who abused the most vulnerable in our society.”
The government is refusing to make time in parliament for MPs to debate the conduct of Prince Andrew amid a flood of new allegations against him.
The prime minister’s spokesperson told reporters: “Prince Andrew has already confirmed he will not use his titles.
“We support the decision made by the Royal Family, and we know the Royal Family would not want to take time from other important issues.”
The only way for MPs to discuss the disgraced royal’s friendship with paedophile Jeffrey Epstein and his peppercorn rent for a mansion would be for the government to make time in the parliamentary timetable.
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2:09
Royal source: Andrew allegations should be examined
Commons Speaker Sir Lindsay Hoyle has said there is no ban on MPs discussing the conduct of a member of the Royal Family, but it would have to be on a “substantive motion” rather than during regular question time sessions.
Substantive motions can be tabled by the government, opposition parties in opposition day debates, and by backbenchers through an application to the Backbench Business Committee.
In response to repeated questions from journalists about why Number 10 was blocking a debate in the main chamber, the spokesman said: “I don’t accept that. Any decision by committees to scrutinise developments are a matter for them.”
Asked whether No 10 viewed it as a waste of parliamentary time to discuss Andrew’s lease of the Royal Lodge on a peppercorn rent, the spokesperson said: “That’s not what I’ve said.”
The chair of parliament’s Public Accounts Committee, Sir Geoffrey Clifton-Brown, said in a statement on Thursday that they will be “writing in the coming days to the Crown Estate Commissioners and HM Treasury, seeking further information on the lease arrangements for Royal Lodge”.
“We will review the response we receive to our forthcoming correspondence, and will consider at that time whether to seek further information,” he added.
The prime minister’s spokesperson said earlier that Sir Keir Starmer “supports proper scrutiny of the crown estates and all uses of taxpayers’ money”, and appeared to back a committee investigation during Prime Minister’s Questions on Wednesday.
Calls for dukedom to be revoked
Pressure has been rapidly increasing on the King’s brother – who announced last week he would stop using his Duke of York title and his knighthood – after revelations in the posthumous memoir of his sex accuser, Virginia Giuffre.
Reports also emerged over the weekend that claimed Prince Andrew asked a royal close protection officer to “dig up dirt” on the late Ms Giuffre.
There are growing calls for his dukedom to be formally revoked, which can only be done by an act of parliament, and for him to give up his 30-room Royal Lodge home in Windsor Great Park after it emerged he paid a peppercorn rent for more than 20 years.
‘We are guided by the palace’
Commons leader Sir Alan Campbell was asked on Thursday whether MPs would have time to debate a motion put forward by the Scottish National Party to create a new law to formally strip Andrew of his dukedom.
The leader of the SNP in Westminster, Stephen Flynn, said: “I have laid a motion before this House which calls on the government to listen to parliamentarians and to listen to the public and to listen to victims and take legislative action to remove the dukedom from Prince Andrew.
“When is the government going to come forward with that legislation?”
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Sir Alan said: “I know that there’s been speculation about legislation. But the palace have been clear that they recognise that there are other matters that this House needs to be getting on with, and we are guided in this by the palace.
“That doesn’t mean that the House can’t find ways of debating these matters, whether it be the matter of titles, or whether it be a matter of the finances, which I know are under question here.”
Prince Andrew has repeatedly and vehemently denied the claims against him made by the late Ms Giuffre.
But a Buckingham Palace source has told Sky News that the “new allegations that have been brought up” are of “very serious and grave concern” and “should be examined in the proper and fullest ways”.
A long-awaited definition of Islamophobia is expected within weeks – and a former faith minister is urging the government to adopt it in full.
It is expected that the government will move away from the word “Islamophobia”, instead replacing it with “anti-Muslim hostility”.
But Lord Khan, who oversaw the start of the review into the definition, told Sky News the government must adopt the full new definition to tackle hate against Muslims.
Image: Lord Khan. Pic: PA
The Labour peer, who was faith minister until the September reshuffle, told Sky News: “I hope it’s a clear definition which reflects the terms of reference which protects people, and it’s clear.
“There’s so many definitions out there, this is an opportunity to address the big problem in our communities.
“I would request and urge the government to adopt the definition which fits within the terms of reference on what we wanted to do when we embarked on the process.
“It’s a strong message to our communities that the work that should be done isn’t being done – these are lived experiences and I am one of those people who has suffered.”
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Image: There was a suspected arson attack at a mosque in East Sussex earlier this month. Pic: Eddie Mitchell
Chaired by former Conservative minister Dominic Grieve, an independent working group has been looking at whether to produce a new definition of Islamophobia since February as part of a government bid to tackle the rise in hate crimes towards British Muslims.
Its aim was to “define unacceptable treatment, prejudice, discrimination and hate targeting Muslims or anyone who is perceived to be Muslim”.
From the beginning, ministers have insisted that any new definition would not infringe on freedom of speech, that it would protect the right to criticise, express dislike of, or insult religions and it would not pave the way for blasphemy laws to pass “through the back door”.
In 2021, Labour adopted a working definition of Islamophobia from a cross-party group supported by Wes Streeting, which said: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.”
This old definition has formed the basis of the Conservatives’ concern with the government’s policy on this new one.
Tory shadow equalities minister Claire Coutinho told Sky News: “I think we all need to be equal in the law and there is already protection in the law – if you are a victim of violence or harassment based on your religion – those protections are already in place.
“What I deeply worry about is putting one group on a pedestal and giving them special protections because that will only breed resentment.”
When pressed on why other protected groups should have a definition, she said: “With the antisemitism definition, there was an international consensus and it was combating a specific thing, which was Holocaust denial.
“If you look at this definition, it’s based on an earlier version and one of the things it said in 2018 was that even talking about the grooming gangs was a form of anti-Muslim hatred.”
Image: Claire Coutinho. Pic: PA
British Muslims say they still face discrimination – and without a specific definition of Islamophobia, crimes can often go underreported. According to multiple monitoring groups, hate crimes have gone up significantly, with Home Office data showing a surge of 20% last year, making Muslims the target in nearly half of religion-based offences.
However, policy groups say the result of adopting a definition could be a “fundamental social and structural change” by the back door, without democratic consent.
The Policy Exchange thinktank claimed that if the government adopts a fixed definition, activists will use it to challenge counter-terrorism laws and undermine the Prevent programme, which aims to steer people away from extremism.
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Ministers are set to decide in the coming weeks on what they will adopt in the report and whether it will be published, with Communities Secretary Steve Reed formally making the announcement when that decision is made.
A Ministry of Housing, Communities and Local Government spokesperson said: “We do not comment on leaks. The department is carefully considering the independent Working Group’s advice on a definition of anti-Muslim hatred/Islamophobia, and no government decisions have been made.
“We will always defend freedom of speech, including fiercely protecting the right to criticise, express dislike of, or insult religions and the beliefs and practices of those who follow them. This will remain at the front of our minds as we review the definition.”