Mana Khanijou, CCO at Merkle Capital, grabs the proverbial bull by the horns in finance

The Cryptomind Group is an umbrella company with many subsidiaries. The main one, licensed under the Cryptomind Group, is called Merkle Capital. I look at institutional clients, high net worth clients, and partnership deals, alongside managing business concerns with the SEC (Securities and Exchange Commission). We were the first to be licensed for Digital Asset Fund Management in Thailand, something relatively new. We were given the license about four years ago, and we’ve been progressing quite well. The AUM (Assets Under Management) has grown with us and has been very consistent. So, my role is to look at the overall progress in terms of the growth of monthly capital.

First of all, you need to really like numbers. You need to be able to take some risks because being in the digital asset space means this is an alternative investment class. This means that under the SEC in Thailand, the risk level is number eight, the riskiest on a scale of 1-8. In order to manage funds of high-net-worth individuals, it’s wise to be very composed. Taking radical or emotional decisions is not an option, and you have to be able to pitch and talk to an extent where clients thoroughly understand the risks and rewards.

What keeps me fuelled is the progress in this space has been quite high in terms of adoption. The growth of Bitcoin ETFs in the United States, which opened a few decades ago, has surpassed that of gold in less than a year. Accompanying the growth rate is the adoption, and the framework that’s being set for a few of the projects in the crypto space is meant for success and not for failure. It’s only a matter of time before it becomes even more mainstream. That really makes it easier for me to do my job because people are more open to investments. And the excitement? I love meeting new people and making new connections. I actually don’t know who’s going to knock on my door next, who’s going to ask me for financial advice, or who is going to put crypto in part of their portfolio. The volatility of this field might be seen as a huge risk, but that’s the exciting part. The adrenaline rush comes from this every day, and if you can capture the right timing, I believe there is big potential to make more monetary gains as well.

The numbers are actually quite positive. Thailand is consistently Top 20 in the crypto global ranking – currently ranked 16th. In 2023, Thailand was ranked 10th. And if you look at the decentralised finance space, it’s very clear that Thai people have the nature of being risk takers; they’re quite open to new spaces such as crypto. However, Thailand’s legal framework might be a bit of a challenge compared to Singapore, Hong Kong, and the USA, which are more adaptive.

I’d say Indian clients being part of Merkel’s portfolio falls below five percent of my total client base. But out of that five percent, those who do invest with Merkel Capital, have a slightly different approach compared to the mainstream investors. I’ve observed that Indian clients look at their portfolios a couple of times a day [chuckles]. Sometimes, there are extreme reactions when the market goes up or down.

Ultimately, they are here to make money, take risks, bear with the process, and go on with the market to meet their end goal, which is achieving diversification in their portfolio in the crypto space. Overall, the reactions have been quite good with Thai-Indians. They’re quite happy with the returns, and they are very, very happy with the services. We have a team of relationship managers, investment consultants, and 24/7 customer support to guide them through each step, from beginning to end.

To be frank, I applaud the Thai-Indian community because they are really good at what they do, which is successfully running their businesses. They are good at making money, but money management after making so much cash may not be as good as how they run their businesses. So, they may not know exactly what the best and most efficient way to manage the cash flow. Look at the mainstream; some people are into property, which has low risk and high capital intensity. That’s fine, but when there’s another financial instrument in the market, such as digital assets, it opens up another door for them. Diversifying into a new space in a smaller portfolio, between one to five percent, is a good start. And this is not just coming from me, this is from the CFA Institute as well, which is a global association of investment professionals.

The first thing to do is to open up your heart to understand the products in this space. Look at your risk appetite and risk management and how much risk you can take, and the most important thing is to look at the portfolio allocation. Do not be overly invested and do not under-invest, either. Set up your mind to understand the digital assets truly, and then look at the risk management and the portfolio application.

The mindset is: don’t come in with the mindset of losing. If you come in with the mindset of losing or not making a loss, it’s starting from a negative starting point. So, I’d say focusing on winning and focusing on selling after making a substantial profit is better. Many investors, once they break even, are out. But the thing is, you’re not in this to bear the risk of breaking even. Why would you be if you were going to be in this space? You should do better than break-even; that makes more sense.

Moreover, don’t listen to non-licensed individuals or freelancers giving advice because sometimes, you don’t know how much research they have actually done. It can become, as we have seen recently, a legitimate scam. A lot of influence comes from those areas. When you see some big names backing a project, it’s good, but we need to make sure that the White Paper (an authoritative report or guide), the plan, the venture capital backing it, and the community are big enough to carry the project through.