Smart Digital Group’s Crypto Fund Faces Backlash After SDM Stock Drop

When a digital marketing firm ventures into the high-risk world of cryptocurrencies, the market usually watches closely. But in the case of Smart Digital Group, its bold announcement of a diversified Crypto Fund sparked chaos instead of confidence. Within hours, its stock price collapsed nearly 87%, leaving investors shaken and regulators circling.

Smart Digital Group’s Crypto Fund Announcement

The company recently revealed plans to launch a diversified funds . The company positioned the move as a strategic entry into the growing asset space, with a focus on established tokens such as Bitcoin and Ethereum.

According to its press release, the fund would emphasize strict risk management, strong compliance, and structured allocation. The group also stated that final details on fund size and distribution would depend on regulatory clearance and evolving market conditions. On paper, the plan looked like a calculated step toward future-proofing the business.

SDM Stock Crashes 87% in One Day

Reality proved very different. On September 26, Smart Digital Group Limited (SDM) witnessed one of the sharpest collapses in its history. The stock opened at $14.30 , but by the market’s close, it had crashed to $1.85 , wiping out nearly $11.76 in value per share—an 86.41% plunge .

Source: Yahoo Finance

After-hours trading extended the pain further, bringing SDM down to $1.77 . With the market cap shrinking to $49.41 million , investors effectively saw seven-eighths of the company’s value erased in less than a day. The most brutal phase came mid-morning when shares free-fell from above $13.50 to near $1.80, stabilizing only after immense damage was done.

Investor Concerns and Regulatory Scrutiny Grow

The fallout wasn’t just about numbers. Analysts suggest the crash reflects deep investor skepticism about whether a marketing services provider has the expertise to manage investments effectively. The lack of clear strategy, uncertainty about fund allocation, and vague timelines raised serious doubts.

Adding to the pressure, regulators have already been intensifying their scrutiny of corporate ventures . Its announcement landed right as authorities are urging more transparency and compliance from businesses exploring assets. This timing may have amplified fears and contributed to the extreme sell-off.

What Comes Next for Smart Digital Group?

For the company, the challenge now is restoring trust . Without a transparent roadmap and more clarity on execution, both investors and regulators may remain wary. The incident serves as a cautionary tale: in crypto, ambition without a clear plan can backfire dramatically.

Conclusion

Smart Digital Group’s entry into the crypto space could have been a story of innovation and growth. Instead, it became a case study in investor panic. Unless the company backs its Crypto Fund with a concrete strategy, regulatory compliance, and visible results, its stock collapse will remain a warning sign for others attempting similar moves.

Disclaimer: This is for educational purposes only. Always do your own research before any crypto investment.