Crypto investment firm Deus X Capital has ceased operations as its backers pursue separate investment strategies, with the company formally unwinding on January 31, 2027. According to CoinDesk, the firm will be led by former Galaxy Digital executive Tim Grant, who will transition to become CEO of TensorX, an AI venture within Darius owned by one of Deus X's founders. Chief Investment Officer Stuart Connolly will remain to oversee the formal unwind, while some portfolio businesses will continue operating with existing stakeholder involvement. The Morton family investors behind Deus X are splitting their investment activities, with Shane Morton establishing Darius focused on artificial intelligence, while Owen and Jason Morton are setting up 95 to invest in markets and fintech. Grant told CoinDesk that "We want to be a prominent player in AI in Europe."
The closure reflects growing competition from AI for investor attention and capital, as reported by Galaxy Research in September. According to CoinDesk, Deus X generated annual returns of 36.5% since inception but declined to disclose its total capital. The family office-backed firm debuted in October 2023 with $1 billion in existing investments and capital available for deployment, with strategy spanning private equity, venture capital and hedge fund allocations across digital assets, blockchain, fintech and institutional capital markets. Its initial investments included stakes in Galaxy Digital and asset manager Hilbert Group, alongside allocations to several hedge funds, with presence in Malta, London and the United Arab Emirates.
The cryptocurrency industry is experiencing a paradoxical situation in 2026 - more crypto companies have announced layoffs than in any full year since 2018, yet adoption continues to grow. According to data from CryptoJobsList, at least 60 crypto, Web3, and blockchain companies have announced layoffs this year, representing a 36% increase over the previous record of 38 companies in 2023. The layoffs have occurred throughout the year rather than being concentrated in one major event, with companies including Pump.fun, Gnosis, Luno, Uphold, BitMart, BitMEX, Exodus, Polygon Labs, FalconX, and AscendEX announcing cuts in July alone. More than 7,411 job losses have been publicly reported in 2026, though this number is heavily affected by one large company: Block, the payments company founded by Jack Dorsey.
Kevin O'Leary, Shark Tank investor and O'Leary Ventures chairman, highlighted similar adoption challenges during the Avalanche Summit in New York. As reported by CoinDesk, O'Leary stressed that blockchain networks must demonstrate real adoption and deals rather than just tests to attract institutional business. He emphasized that 'show me adoption' is the critical requirement for technology acceptance in the financial sector. The current layoff situation reflects this challenge, as companies focus on achieving sustainable user adoption while navigating the transition from infrastructure development to mainstream finance integration, with AI's growing competition for investor attention adding to venture firms' fundraising challenges.
WisdomTree, the $150 billion asset manager, is expanding distribution of its tokenized funds through strategic partnerships. According to CoinDesk, the company recently announced a collaboration with MoonPay to allow eligible U.S. retail customers to access tokenized money market fund WTGXX through MoonPay's platform. This approach enables customers to purchase funds using stablecoins without separate onboarding processes with WisdomTree. The industry's focus on user adoption continues despite the current layoff environment, with companies like WisdomTree demonstrating how traditional financial institutions are integrating blockchain technology into their operations.
