In response to ongoing bearishness in the cryptocurrency markets, Israeli firm First Digital Assets Group (FDA) has embarked on a major restructuring effort, the country’s Globes business news outlet reported on Monday. The company’s plans include merging four of FDA’s companies, closing its One Alpha research subsidiary, and laying off most of its workers.
In remarks to Globes, FDA reportedly cited 2019’s crypto market meltdown as a primary motivation for the new strategic approach:
“The cryptocurrencies market experienced an earthquake last year, which forces us to be brave and consider First Digital Assets' various activities. We believe strongly in the sector. 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 report suggests that First Digital Assets will merge four of its five subsidiary companies into FDA. Those companies, K1, Knox, Stamina, and Titan, provide crypto trading services to various investors and investment funds, safe deposit box crypto storage, financial instrument development services, and secure digital wallet options. Those services will reportedly continue but will be scaled back.
The company’s fifth subsidiary, One Alpha, has already been shut down as part of the restructuring plan. The company has not yet indicated exactly how many of its employees will be laid off, but Globes cited sources suggesting that the plan involves “laying off most of its employees in the near future.”