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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
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.”

Sandeep Nailwal
Sandeep Nailwal. (Polygon)

Also read: ZK-rollups are ‘the endgame’ for scaling blockchains: Polygon Miden founder

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
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.

Matic founders
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.

Also read: Ethereum is eating the world — ‘You only need one internet’

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.

Matic Network nearly dies

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.”

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“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 and wife posted on Facebook
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.’”

Pic from wedding
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. 

Andrew Fenton

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.

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Politics

Refugee status set to become temporary in radical asylum reforms

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Refugee status set to become temporary in radical asylum reforms

People granted asylum in the UK will only be allowed to stay in the country temporarily, in sweeping reforms expected to be announced on Monday.

Modelled on the Danish system, the aim is to make the UK less attractive for illegal immigrants and make it easier to deport them.

Planned changes mean that refugee status will become temporary and subject to regular review, with refugees removed as soon as their home countries are deemed safe.

Under current UK rules, those granted refugee status have it for five years and can then apply for indefinite leave to remain and get on a route to citizenship.

In a social media video trailing her announcement, Home Secretary Shabana Mahmood said: “We will always be a country that gives sanctuary to people who are fleeing danger, but we must restore order and control.”

She called it “the most significant changes to our asylum system in modern times”.

An ally of the home secretary said: “Today, becoming a refugee equals a lifetime of protection in Britain.

More on Denmark

“Mahmood will change that, making refugee status temporary and subject to regular review. The moment your home country is safe to return to, you will be removed.

“While this might seem like a small technical shift, this new settlement marks the most significant shift in the treatment of refugees since the Second World War.”

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UK looks to Denmark for tougher immigration policy

Time and money ‘wasted’ on Rwanda scheme

While the number of asylum claims across Europe has fallen, numbers in Britain have risen.

Ms Mahmood said the previous government had had “years to tackle this problem” but had “wasted” time and money on the £700m Rwanda scheme.

Read more: Could Danish model save Labour’s bacon?

Some 39,075 people have arrived in the UK after making the journey across the Channel so far this year, according to the latest Home Office figures.

That is an increase of 19% on the same point in 2024 and up 43% on 2023, but remains 5% lower than at the equivalent point in 2022, which remains the peak year for crossings.

Other changes expected to be announced on Monday include requiring judges to prioritise public safety over migrants’ rights to a family life, or the risk that they will face “inhuman” treatment if returned to their home country, the Telegraph has reported.

Denmark’s tighter rules on family reunions are also being looked at.

Read more politics news:
Under-fire Starmer aide won’t quit
Plans to raise income tax in budget ditched

Pic: Reuters
Image:
Pic: Reuters

What are Denmark’s migration rules?

Denmark has adopted increasingly restrictive rules in order to deal with migration over the last few years.

In Denmark, most asylum or refugee statuses are temporary. Residency can be revoked once a country is deemed safe.

In order to achieve settlement, asylum seekers are required to be in full-time employment, and the length of time it takes to acquire those rights has been extended.

Denmark also has tougher rules on family reunification – both the sponsor and their partner are required to be at least 24 years old, which the Danish government says is designed to prevent forced marriages.

The sponsor must also not have claimed welfare for three years and must provide a financial guarantee for their partner. Both must also pass a Danish language test.

In 2018, Denmark introduced what it called a ghetto package, a controversial plan to radically alter some residential areas, including by demolishing social housing. Areas with over 1,000 residents were defined as ghettos if more than 50% were “immigrants and their descendants from non-Western countries”.

In 2021, the left of centre government passed a law that allowed refugees arriving on Danish soil to be moved to asylum centres in a partner country – and subsequently agreed with Rwanda to explore setting up a program, although that has been put on hold.

Changes will prevent refugees from ‘integrating into British life’

While some research has suggested that deterrence policies have little impact on asylum seekers’ choice of destination, but a 2017 study said Denmark’s “negative nation branding” had proved effective in limiting asylum applications.

The number of successful asylum claims has fallen to a 40-year low in Denmark, with 95% of failed asylum seekers deported from the country.

But some believe the changes could damage future generations seeking a haven from war, persecution and violence.

Enver Solomon, chief executive of Refugee Council, said: “These sweeping changes will not deter people from making dangerous crossings, but they will unfairly prevent men, women and children from putting down roots and integrating into British life.

“Refugee status represents safety from the conflict and persecution that people have fled.

“When refugees are not stuck in limbo, they feel a greater sense of belonging, as full members of their new communities with a stable future for themselves, their children and generations to come.

“We urge the government to rethink these highly impractical plans, which will also add to the backlog and chaos that the Home Office is tackling.

“Instead, they should ensure that refugees who work hard and contribute to Britain can build secure, settled lives and give back to their communities.”

Shabana Mahmood will be appearing on Sunday Morning with Trevor Phillips from 8.30am tomorrow.

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Politics

Bitcoin falls to 6-month low as ETF demand collapses: Finance Redefined

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Bitcoin falls to 6-month low as ETF demand collapses: Finance Redefined

Cryptocurrency markets have extended their decline despite much-awaited political developments taking place in the US.

On Wednesday, President Donald Trump signed a funding bill to end the record 43-day US government shutdown, after the bill passed through the Senate on Monday and was approved by the House of Representatives on Wednesday.

The bill provides funding to the government until Jan. 30, 2026, and gives Democrats and Republicans more time to strike a deal on broader funding plans for the year ahead.  

The end of the shutdown failed to lift demand among Bitcoin (BTC) exchange-traded fund (ETF) buyers. Spot BTC ETFs saw a brief resurgence on Tuesday, attracting $524 million in inflows, but outflows quickly resumed, with a whopping $866 million in daily net outflows on Thursday, according to Farside Investors.

Bitcoin fell to a six-month low of $95,900 on Friday, a level last seen in May as its biggest demand drivers continued to lack momentum.

Investments from ETFs and Michael Saylor’s Strategy were the two main vehicles driving demand for Bitcoin’s price this year, according to Ki Young Ju, founder and CEO of crypto analytics platform CryptoQuant.

BTC/USD, one-year chart. Source: Cointelegraph

Bitcoin ETF demand stalls as US shutdown optimism fails to lift sentiment

The lack of demand for spot Bitcoin ETFs is raising concerns about Bitcoin’s prospects for the rest of the year.

On Monday, the US Senate approved the funding bill and brought Congress a step closer to ending the shutdown. The legislation headed for a full vote in the House of Representatives, which occurred on Wednesday.

Despite optimistic news from the US, spot Bitcoin ETF investments remained flat on Monday, with just $1.2 million of inflows, according to data from Farside Investors.

Bitcoin ETF Flows, US dollars (in millions). Source: Farside Investors

“Despite the US shutdown seemingly ending, and the S&P and Gold bouncing hard, Bitcoin ETFs saw NO bid yesterday,” said Capriole Investments founder, Charles Edwards, adding that this is not a dynamic we want to see continue.

“Risk assets usually see a strong bid in the weeks out of the Shutdown. Still time to turn this ship around, but it needs to turn,” Edwards wrote in a Tuesday X post.

Spot Bitcoin ETF inflows were the primary driver of Bitcoin’s momentum in 2025, Standard Chartered’s global head of digital assets research, Geoff Kendrick, told Cointelegraph recently.

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Bitwise exec says 2026 will be crypto’s real bull year; here’s why

Bitwise chief investment officer Matt Hougan is more confident that crypto markets will boom in 2026, particularly as there hasn’t been a late 2025 rally.

Speaking to Cointelegraph at The Bridge conference in New York City on Wednesday, Hougan said a crypto market rally at the end of 2025 would have fit the four-year cycle thesis, meaning 2026 would mark the start of a bear market, similar to 2022 and 2018.

When asked to revise his prediction about whether the crypto market will boom in 2026, Hougan said: “I’m actually more confident in that quote. The biggest risk was [if] we ripped into the end of 2025 and then we got a pullback.”

Hougan said interest in the Bitcoin debasement trade, stablecoins and tokenization would continue to accelerate, while arguing that Uniswap’s fee switch proposal introduced on Monday would reinvigorate interest in decentralized finance protocols in the coming year.

“I think the underlying fundamentals are just so sound,” Hougan said. “I think these earlier forces, institutional investment, regulatory progress, stablecoins, tokenization, I just think those are too big to keep down. So I think 2026 will be a good year.”

Matt Hougan at The Bridge conference in New York City. Source: Cointelegraph

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Arthur Hayes tells Zcash holders to withdraw from CEXs and “shield” assets

The privacy coin sector returned to the spotlight after BitMEX co-founder Arthur Hayes urged Zcash holders to withdraw their assets from centralized exchanges (CEXs). 

On Wednesday, Hayes told holders to “shield” their assets, a feature that enables private transactions within the Zcash network. “If you hold $ZEC on a CEX, withdraw it to a self-custodial wallet and shield it,” Hayes wrote on X.

The comments came as Zcash (ZEC) saw sharp price swings in the last few days. The token rallied to $723 on Saturday before dropping to $504 on Sunday. It then surged to a high of $677 on Monday, only to see another sharp decline. At the time of writing, ZEC was trading at about $450, marking a 37% decline from its Saturday high. 

Analysts had warned that ZEC might undergo a sharp correction due to its relative strength index (RSI) reaching its highest reading after continuing to rally above its overbought zone. 

Zcash’s seven-day price chart. Source: CoinGecko

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Vitalik Buterin champions decentralization in “Trustless Manifesto”

Ethereum co-founder Vitalik Buterin has authored and signed the new “Trustless Manifesto,” which seeks to uphold core values of decentralization and censorship resistance and push builders to refrain from adding intermediaries and checkpoints for the sake of adoption.

The Trustless Manifesto, also authored by Ethereum Foundation researchers Yoav Weiss and Marissa Posner, said crypto platforms sacrifice trustlessness from the first moment that they integrate a hosted node or centralized relayer, explaining that while it feels harmless, it becomes a habit, and with each passing checkpoint, the protocol becomes less and less permissionless.

“Trustlessness is not a feature to add after the fact. It is the thing itself,” the Ethereum Foundation members said in the manifesto published Wednesday. “Without it, everything else — efficiency, UX, scalability — is decoration on a fragile core.”

“When complexity tempts us to centralize, we must remember: every line of convenience code can become a choke point.”

Extract from The Trustless Manifesto. Source: Trustlessness.eth

While the manifesto wasn’t aimed at any particular person or company, some Ethereum layer 2s have been criticized for sacrificing decentralization to focus on scalability to speed up adoption.

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Sonic Labs pivots from speed to survival with business-first strategy

Sonic Labs, the organization behind the Sonic layer-1 blockchain, announced a major strategic shift as it pivots from emphasizing transaction speed to building long-term business value and token sustainability.

After claiming industry-leading performance last year, Sonic Labs said its next chapter will focus on upgrades that deliver measurable financial outcomes, including new Ethereum and Sonic Improvement Proposals (EIPs and SIPs), token supply reductions and revamped rewards for network participants.

“Every decision we make moving forward will be guided by the principles of building real value, with price, growth, and sustainability always in focus,” said Mitchell Demeter, the new CEO of Sonic Labs. 

The focus aims to bring “measurable, lasting value” for builders, validators and tokenholders, wrote Demeter in a Tuesday X post. “Our mission at Sonic is to move beyond hype and build a sustainable business model for a layer one, that creates, captures, and returns real value to tokenholders.”

The new fee monetization upgrade will include a tiered reward system for builders and fixed rewards for validators.

Sonic Labs will also increase the rate of programmatic Sonic (S) token burns, which means permanently removing tokens from circulation to tighten the supply.

Source: Mitchell Demeter

Sonic claims to be the world’s fastest Ethereum Virtual Machine (EVM) chain, with a “true” finality of 720 milliseconds (ms) — the assurance that a transaction is irreversible, which occurs after it is added to a block on the blockchain ledger.

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DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.

The privacy-preserving Dash (DASH) token fell 45% to stage the biggest decline in the top 100, followed by the Internet Computer (ICP) token, down over 27% on the weekly chart.

Total value locked in DeFi. Source: DefiLlama

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.