Trump sues The New York Times for $1.5 billion in defamation; his Meme coin TRUMP falls 88%, and the ETF application prospects are in doubt.

Former President Trump filed a defamation lawsuit against The New York Times on Monday evening in a Florida court, seeking $1.5 billion in damages, accusing the newspaper of publishing "false, malicious, and defamatory" reports about his business history and political image. This move further intensifies the long-standing conflict between Trump and the mainstream media in the United States. Meanwhile, the meme coin TRUMP associated with Trump is also facing difficulties.

Litigation Focus: Accusations Against Media for "Interfering in Elections"

Trump named The New York Times Company, reporters Susanne Craig, Russ Buettner, Peter Baker, and Michael S. Schmidt, as well as publisher Penguin Random House, in the lawsuit. He particularly criticized the newspaper's public support for Vice President Harris on the front page during the 2024 election as an "illegal campaign contribution to the Democratic Party" and accused it of spreading false information through the book "The Lucky Loser: How Donald Trump Squandered His Father's Wealth and Created the Illusion of Success," causing "billions of dollars in reputational damage" to his personal brand and business interests.

Trump stated on his social platform Truth Social that The New York Times is the "full mouthpiece of the Democratic Party" and claimed that its "decades-long lies" about him and his political movement constitute "election interference." This lawsuit is one of a series of recent legal actions by Trump against the media. In July of this year, he sued The Wall Street Journal and Rupert Murdoch over a report related to notes about his connection with Jeffrey Epstein, and also reached a settlement of over $15 million with ABC News and Paramount's 60 Minutes.

The New York Times responded firmly, stating that the lawsuit "has no legal basis" and is "a tactic to intimidate independent news reporting," emphasizing that it will uphold the freedom of the press granted by the First Amendment.

Meme coin TRUMP plummets 88%, ETF application faces regulatory hurdles

At the same time, the meme coin TRUMP associated with Trump is also in trouble. On August 27, the cryptocurrency fund management company Canary Capital submitted the first TRUMP spot ETF application in the U.S., promising to hold the tokens in full custody. If approved, this would be the first ETF in history directly linked to a sitting president's personal cryptocurrency project.

However, market analysts generally remain skeptical. Bloomberg ETF expert Eric Balchunas pointed out that spot ETFs typically require at least six months of a futures market as a regulatory prerequisite, while TRU lacks this foundation. Although the U.S. Securities and Exchange Commission (SEC) softened its stance on cryptocurrencies during Trump’s term and clarified in February that meme coins do not fall under the category of securities, the approval outlook remains uncertain.

The current trading price of TRU coin is about $8.59, a staggering 88% drop from the historical peak of $73.43 in January, with the daily trading volume shrinking from $36 billion in January to around $300 million, indicating a sharp decline in retail investor interest.

Wealth Transformation: Cryptocurrency Becomes a New Pillar for the Trump Family

Despite the poor performance of TRU coin, the Trump family continues to expand its presence in the crypto space. According to Cryptonews estimates, Trump and his relatives have made over $620 million in profits through digital assets, with cryptocurrency currently accounting for 9% of their $6 billion fortune, while real estate's share of their wealth has decreased from 86% to about 50%.

This legal lawsuit, amidst the dual turmoil of the cryptocurrency market, reflects Trump's intertwined influence and controversy in the realms of politics, media, and finance. Regardless of the outcome of the lawsuit, the legal battle against the media and the deep connection with crypto assets have further reshaped the boundaries of the political and financial ecosystem in the United States.

Conclusion

Trump's massive lawsuit against The New York Times and the plummet of his Meme coin TRUMP reflect the multiple games he is playing on the political, media, and financial battlegrounds. The legal action is both a continuation of his strategy to counter "fake news" and an effort to reshape public narrative; meanwhile, his aggressive positioning in the cryptocurrency space highlights the deep ties between his family's wealth transformation and emerging asset classes. However, the collapse of TRUMP coin and the uncertainty surrounding ETF approvals expose the vulnerability of Meme coins due to a lack of fundamental support. If Trump attempts to further extend his influence through lawsuits and crypto assets, his success or failure could profoundly impact the narrative of the 2024 election, the boundaries of media freedom, and the trajectory of cryptocurrency regulation. In this high-risk multi-front war, the entanglement of law, politics, and finance has become another footnote in the polarization of American society.