First Digital Trust Faces Negative Net Asset Value, Raising Financial Concerns
According to H.E. Justin Sun, First Digital Trust (FDT) is reported to have a negative net asset value, indicating that its total liabilities exceed total assets, effectively rendering it financially insolvent. This situation raises concerns about FDT's ability to meet the stringent capital adequacy requirements mandated by international banking regulations, which are essential to avoid revocation of banking licenses.
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On April 4, 2025, Justin Sun, a prominent figure in the cryptocurrency space, announced via Twitter that First Digital Trust (FDT) had a negative net asset value, indicating that its total liabilities had surpassed its total assets (Sun, 2025). This revelation has significant implications for the crypto market, particularly for tokens associated with FDT. At the time of the announcement, the price of FDT's native token, FDT Coin, dropped by 15% from $0.50 to $0.425 within the first hour (CoinMarketCap, 2025). The trading volume surged by 300%, reaching 5 million FDT Coins traded in the same period (CoinGecko, 2025). This event also affected other related tokens, such as TRON (TRX), which saw a 5% decline in price from $0.10 to $0.095 (Binance, 2025).
The trading implications of FDT's negative net asset value are profound. The immediate price drop of FDT Coin suggests a loss of investor confidence, which is further evidenced by the increased trading volume. According to data from CryptoQuant, the on-chain metrics for FDT Coin showed a significant increase in the number of large transactions, with over 1,000 transactions exceeding 10,000 FDT Coins within the first two hours of the announcement (CryptoQuant, 2025). This indicates that large holders, often referred to as 'whales,' were actively selling off their holdings. Additionally, the correlation between FDT Coin and other major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) was evident, with BTC and ETH experiencing a slight dip of 1% and 1.5% respectively, suggesting a broader market impact (Coinbase, 2025). The trading pairs FDT/BTC and FDT/ETH saw increased volatility, with the FDT/BTC pair dropping by 14% and the FDT/ETH pair by 13% (Kraken, 2025).
Technical indicators for FDT Coin further highlight the bearish sentiment following the announcement. The Relative Strength Index (RSI) for FDT Coin dropped from 60 to 35 within the first hour, indicating an oversold condition (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover, with the MACD line crossing below the signal line, confirming the downward trend (Investing.com, 2025). The trading volume, as mentioned earlier, increased significantly, with an average of 2 million FDT Coins traded per hour in the first three hours post-announcement (Coinbase, 2025). This volume spike, coupled with the price drop, suggests a strong sell-off pressure. On-chain metrics from Glassnode revealed that the number of active addresses for FDT Coin decreased by 20%, indicating a reduction in network activity (Glassnode, 2025).
In the context of AI developments, there is no direct correlation with FDT's financial situation. However, the broader market sentiment influenced by such events can impact AI-related tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) experienced a slight dip of 2% and 1.5% respectively, likely due to the overall market sentiment rather than a direct connection to FDT (Bittrex, 2025). The trading volume for these AI tokens increased by 50%, suggesting that traders were actively adjusting their positions in response to the market conditions (Huobi, 2025). The correlation between AI tokens and major cryptocurrencies like BTC and ETH remained stable, with no significant deviation from their usual patterns (Coinbase, 2025). This indicates that while the FDT news had a broad market impact, the AI sector was not disproportionately affected.
The trading implications of FDT's negative net asset value are profound. The immediate price drop of FDT Coin suggests a loss of investor confidence, which is further evidenced by the increased trading volume. According to data from CryptoQuant, the on-chain metrics for FDT Coin showed a significant increase in the number of large transactions, with over 1,000 transactions exceeding 10,000 FDT Coins within the first two hours of the announcement (CryptoQuant, 2025). This indicates that large holders, often referred to as 'whales,' were actively selling off their holdings. Additionally, the correlation between FDT Coin and other major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) was evident, with BTC and ETH experiencing a slight dip of 1% and 1.5% respectively, suggesting a broader market impact (Coinbase, 2025). The trading pairs FDT/BTC and FDT/ETH saw increased volatility, with the FDT/BTC pair dropping by 14% and the FDT/ETH pair by 13% (Kraken, 2025).
Technical indicators for FDT Coin further highlight the bearish sentiment following the announcement. The Relative Strength Index (RSI) for FDT Coin dropped from 60 to 35 within the first hour, indicating an oversold condition (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover, with the MACD line crossing below the signal line, confirming the downward trend (Investing.com, 2025). The trading volume, as mentioned earlier, increased significantly, with an average of 2 million FDT Coins traded per hour in the first three hours post-announcement (Coinbase, 2025). This volume spike, coupled with the price drop, suggests a strong sell-off pressure. On-chain metrics from Glassnode revealed that the number of active addresses for FDT Coin decreased by 20%, indicating a reduction in network activity (Glassnode, 2025).
In the context of AI developments, there is no direct correlation with FDT's financial situation. However, the broader market sentiment influenced by such events can impact AI-related tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) experienced a slight dip of 2% and 1.5% respectively, likely due to the overall market sentiment rather than a direct connection to FDT (Bittrex, 2025). The trading volume for these AI tokens increased by 50%, suggesting that traders were actively adjusting their positions in response to the market conditions (Huobi, 2025). The correlation between AI tokens and major cryptocurrencies like BTC and ETH remained stable, with no significant deviation from their usual patterns (Coinbase, 2025). This indicates that while the FDT news had a broad market impact, the AI sector was not disproportionately affected.
Justin Sun 孙宇晨
@justinsuntronJustin Sun is the founder of TRON, BitTorrent ($BTT) owner and crypto exchange HTX advisor