First Digital Assets Announces Layoffs and Restructuring
The latest firm to restructure its operations in light of the bear market is First Digital Assets, who announced on March 4, 2019, that they would be laying off staff and closing its research arm.
Many companies have been hit hard by the crypto winter and it would seem that many have been forced to either close shop altogether or layoff staff. In the case of First Digital Assets, they have fallen into the latter category.
It has recently been reported that the company will be restructuring its business policy and a part of this will involve the extensive laying off of staff.
As part of their restructuring effort, the company will be closing down its research arm One Alpha; other facets of the company such as K1, Stamina, Titan, and Knox, will be merged into the parent company.
As for the layoffs that are to take place, it would seem that they have already begun. The company explained that the crypto industry experienced an ‘earthquake’ last year which has affected its profitability. There is some hope, however, as the company revealed that they have raised some funds and will focus on their liquid activities.
Speaking with Globes, the company said:
“Fortunately, we have raised a large sum that remains in the company treasury, together with the vast experience we gained and the partnerships we created. We are therefore focusing on our liquidity activity, which continues to be fruitful, while at the same time channeling our development efforts to creating new solutions in blockchain, which we believe is the technology of the future,”
The company has successfully raised about $21 million in funding from investors such as Apax Partners founder Ronald Cohen, the Mangrove fund, German-Israeli fund TargetGlobal, the Scale-Up Crypto Capital fund, and iAngels, controlled by Shelly Hod Moyal and Mor Assia.
Before this announcement, the company had been rather diverse in its operations and have various functional arms. There was K1, which was responsible for providing crypto trading services, Titial, which provided wallet services to firms, Knox, which provided safety deposit services for large amounts of crypto, stamina, which devised financial instruments and OneAlpha, which provided research and consultation services.
All these arms will now be merged into the parent company and OneAlpha will be shut down entirely.