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Culture
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6 min read

The rights and wrongs of making money with meme coins

When does investing become speculating, or even addictive gambling?
A montage shows Trump with a raised fist against other images of him and the phrase 'fight fight fight'.
$Trump coin marketing image.
gettrumpmemes.com,

Donald Trump’s “liberation day” tariffs may have driven sharp swings in global financial markets, but his actions in markets a few months earlier were in some ways even more peculiar.

On the Friday before his inauguration as the 47th US President in January, the Republican surprised many with the launch of the $TRUMP memecoin, described by its website as “the only official Trump meme”. The cryptocurrency token, in which Trump’s family business owned a stake, initially soared in value to more than $14bn over that following weekend. 

Then, on the Sunday, Trump’s wife Melania launched her own memecoin, $MELANIA, which reached a value of $8.5bn. Even the pastor who spoke at the president’s inauguration subsequently launched his own memecoin. 

For those wondering what exactly a memecoin is, you are not alone. In short, they are a form of cryptocurrency - an asset class that itself has attracted plenty of questions about its substance and purpose - representing online viral moments. They have no fundamental value or business model and, according to the US securities regulator, “typically have limited or no use or functionality”. 

Donald and Melania Trump’s coins subsequently plunged in price, but still have a value of around $2.5bn and $214mn respectively, according to website CoinMarketCap. 

There are plenty of others in existence. PEPE, based on a comic frog, has a value of around $3.6bn; BONK, a cartoon dog, has a market cap of $1.5bn; and PNUT, a reference to a squirrel euthanised by authorities in New York and about which Trump was allegedly “fired up” (although doubt has since been cast on the president’s involvement in the matter), is still valued at around $174mn, despite having fallen sharply in price.  

Dogecoin, seen as the world’s first memecoin and originally created as a joke, boasts a market value of around $25bn. (There are other memecoins which may not be suitable for these pages). 

Some people’s willingness to buy an “asset” with no use or fundamental value may seem strange to more traditional investors. But it can be viewed as just one manifestation of the speculative investor behaviour evident since the onset of the coronavirus pandemic and, indeed, at times throughout history. 

The price of Bitcoin recently rose above $100,000, despite many investors still viewing it as having little or no value (in 2023 the UK’s Treasury select committee described cryptocurrencies as having “no intrinsic value, huge price volatility and no discernible social good”). In early 2021, shares in GameStop - a loss-making US video games retailer that some hedge funds were betting against - rocketed as much as 2,400 per cent, as retail investors piled in, many with the aim of inflicting pain on the hedge fund short sellers (in that respect at least, a highly successful strategy that became the subject of the film Dumb Money). The huge rise in AI and other tech stocks in recent years - until the recent tariff-driven volatility - has also been described as a bubble by some commentators. 

Whether or not such episodes can be compared to infamous bouts of speculative mania in history depends on your point of view (and often can only be judged with the benefit of hindsight) - be it the 17th century Dutch tulip bulb mania, shares in the South Sea Company in the 18th century or the dotcom boom and bust of the late 1990s and early 2000s. 

But it does give rise to the question of when investment should start to be described as speculation or even as gambling? And what are the rights and wrongs of any of those activities? 

There can be negative effects, for instance if the actions of speculators force businesses in the real economy to change their plans or divert time and resources... 

Gambling can be thought of as risking a stake on, for instance, the result of a game of chance or sport in the hope of a bigger payout. While often the result is purely down to chance, in some cases a strategy or an element of research (for instance of a horse or football team’s form) can be used. Investment, in contrast, tends to involve purported economic utility and assets believed to have some sort of underlying value, and holds the hope of future profit (although there are also plenty of bad investments or those that have gone to zero). While an investor must be prepared to lose their entire stake, in some cases such an event is relatively unlikely (for instance, if they buy a fund tracking the performance of a major stock exchange). Speculation is harder to define, but is generally seen as shorter term than investment, with more chance of a bigger gain or loss, and dependent on price fluctuations. Rightly or wrongly, the term has a more negative connotation than investment. 

One writer who explored the ethics of these activities was Oswald von Nell-Breuning, a Jesuit theologian and economist who served as an adviser to the Pope and who was banned from publishing under the Nazis. 

While he found that “one general definition cannot capture all the nuances” of speculation, he identified two different types of speculative activity - one that was purely trying to make a profit from financial market trading, and one based on trying to create a viable business. (See this article in the Catholic Social Science Review for a fuller explanation of Nell-Breuning’s views on speculation). 

As the CSSR article shows, Nell-Breuning found that there can be positive effects from speculation - one might think of better liquidity and price discovery in a market, while, in commodity futures markets, speculators allow producers to hedge risk

But he also argued that there can be negative effects, for instance if the actions of speculators force businesses in the real economy to change their plans or divert time and resources away from production. 

And whereas gambling typically takes place within a circle of players who have chosen to take part, speculation, he wrote, can affect a greater portion of society - for instance, if it affects the price of shares or bonds they hold. 

The Bible - on which Nell-Breuning’s faith and analysis was based - does not take a prescriptive approach to such activities. But it does provide some interesting guidance.  

An entrepreneurial approach to business and investment is applauded, for instance when the writer of the book of Proverbs (traditionally believed to be King Solomon) praises the virtues of “an excellent wife”. These include investing in a field and using her earnings from business to plant a vineyard, and feeding her family from her gains. 

Jesus tells a story of a master who, before going on a journey, gives his property to his servants, each according to their ability. To one he gives five “talents” (a large unit of money), to a second two and to a third servant he gives one. 

The first servant trades with his talents and makes five more talents - a 100 per cent profit - and is applauded by the master on his return. The second servant also trades and similarly makes two more talents and is again applauded. 

But the third servant, being afraid and believing the master to be “a hard man”, hides the money in a hole in the ground. He is condemned as “wicked and slothful”, and told that he should at least have put the money in the bank. 

While Jesus’s story may primarily be about how we view God’s nature, how we use our God-given abilities and whether or not we can take risks in faith for Him, it is also hard not to see investment and indeed wise speculation as being virtuous activities here. Putting the money into a bank account is, in this story anyway, more of a fallback option. 

But the Bible also warns us against putting money above all else in our lives. The love of money is, famously, a root of all sorts of evil, while we are also told to be content with what we have, and that “wealth gained hastily will dwindle”. 

Nell-Breuning similarly warns that a “get-rich-quick” mindset, when this is placed above all else, can be harmful, and advises caution in situations where the lure of big profits can lead the speculator into market manipulation or fraud. 

After all, both gambling and crypto trading have the potential to become dangerous and damaging addictions needing treatment

Ultimately, Nell-Breuning struggled to come to a simple conclusion on the question of whether speculation, in and of itself, is morally wrong. It is, he wrote, a judgment call for those involved. 

When making such decisions ourselves, his - and the Bible’s - warnings may be worth bearing in mind. 

Review
Culture
Film & TV
Language
Music
6 min read

The Phoenician Scheme - opening the mind to wider horizons

Wes Anderson's new film widens our vision to a bigger world

Oliver is a Junior Research Fellow at Pembroke College, Oxford, writing and speaking about theology and AI.

Characters from a Wes Anderson film sit in a stylish plane interior.
Benicio del Toro and Mia Threapleton star.

Wes Anderson’s latest film – The Phoenician Scheme – has caused as much confusion amongst critics and viewers as it has the usual delight. It tells the story of Anatole – Zsa-Zsa – Korda, his mad-cap business scheme across an imagined near-Eastern world, and his growing relationship with his daughter (apparently), Liesl, a novitiate nun. There are the usual Anderson-ian tropes and characters, with superb cameos by Tom Hanks, Richard Ayoade, and Benedict Cumberbatch (worth watching in itself), and a real star turn for the young Liesl, Mia Threapleton.  

I first watched it on a transatlantic flight (viewer advisory: there are several scenes in rickety planes). I was hooked from the first moment. Why? Not just the usual Anderson style and panache and dead-pan weird story and acting. It was the music. Anderson himself first trained as a musician. It shouldn’t be a surprise that amidst the rest of Anderson’s meticulously designed and curated world the music should carry so much meaning.  

The opening scene (no spoiler, it’s in the trailer), involves the burning wreckage of a plane (viewer advisory). There are birds – crows, hovering. And from the wreckage, bloodied but unbowed, emerges Korda. We hear from a voiceover that this is by no means the first assassination attempt he has survived. It won’t be his last. But the music at this precise point? It is a dark and brooding short melodic fragment. Does this portray a dark and brooding – evil, even – presence in the main character? Indeed, this dark melodic fragment follows Korda around the whole film, a leitmotif.  

But far from it. And this is what delighted me and hooked me. Because this isn’t just any old dark and brooding melodic fragment. It is the opening notes of Stravinsky’s magnificent ballet score, his first hit for the Russian impresario in Paris, Diaghilev and his ‘Ballets Russes’, The Firebird. Now here’s the fun thing. If you know the ballet, you know that it is the magic of the firebird’s feather which brings new life out of death in the ballet’s wonderful conclusion. And that is because the Firebird story itself is based on another mythical bird-creature – the phoenix (remember the title of the movie). The mythical phoenix is a bird which cyclically dies in flames, only to be reborn from the ashes to new life. So immediately, even though all we can see is the burnt-out wreckage of a plane, what we might think to ourselves if we know our Stravinsky, is that perhaps what this melodic fragment signifies, far from a brooding menacing presence, is someone who is constantly going to reemerge from the ashes to new life. In fact, I immediately felt I would be surprised if that wouldn’t happen. Korda himself says at a certain point ‘I won’t die, I never do’. Just from a musical fragment, the whole story can be seen in one glimpse.  

There are two other Stravinsky ballets which Anderson skilfully deploys (although less intrusively than the Firebird theme): the joyous whirligig of the opening of Petrushka, and the searing epilogue of the ballet Apollo. Now the Petrushka music does seem to be associated with another character, just like Firebird is associated with Korda. In the movie, Petrushka appears in two moments of significance for Liesl, (apparently) Korda’s daughter, the novitiate nun (and therefore herself already intimately associated with music – The Sound of Music). But the telling thing here is that, unlike Firebird, Petrushka (the ballet) doesn’t end well for its eponymous puppet-hero. Petrushka is killed by another puppet, with only a fleeting appearance at the end as a ghost. So the music of the ballet of Petrushka, despite the excerpt we hear being full of joyousness and innocent youthful energy, and its association with Liesl, suggests that her journey in the film is going to go in a very different direction to the convent of her initial intentions. Once again, knowing the music and the whole pattern of it can foretell an entire history that will unfold, even just from a mere fragment.  

Now the next thing that is so fascinating here is the combination of Stravinsky and Wes Anderson. Stravinsky wrote several ballet scores for the ‘Ballet Russes’ and Diaghilev in the glamour of Paris of the 1920s and 1930s (amongst other famous ones are The Rite of Spring (which caused a riot), Orpheus, and Pulcinella). They are highly stylised pieces, often returning to Classical ideas and tropes (musically, as well as in theme), presenting stylised and formal dances, tableaux. And whilst all these descriptions could be applied to Anderson’s films, The Phoenician Scheme itself presents a series of quirkily introduced tableaux, with their own distinctive characters and settings. And, in the concluding scene, set in a theatre, all the characters are present all at once. A miniature mechanical device representing all of Korda’s business interests appears on a stage. And the music at that point? The opening movement of Pictures at an Exhibition (by Mussorgsky, a Russian composer from the generation before Stravinsky), music which presents its own series of musical tableaux. Artistic tableau, musical tableau, ballet, and now film presented as a series of tableaux all coming together in Anderson’s fertile imagination.  

But there is one last thing that is fascinating for us in this presentation of music and art and film and plot. There is a much earlier precursor for the technique I referred to above, of one musical fragment potentially carrying with it the implication and meaning of the whole work. That earlier precursor for this technique is found in the New Testament. The authors of the New Testament, especially Paul, were saturated in the texts which we now call the Old Testament, or what they thought of as their Scriptures (just as, we might say, Anderson is clearly saturated in Stravinsky). Scholars think the New Testament writers assumed a familiarity with those Scriptures in the hearers and readers of their new writings, or, alternatively, they were helping their hearers and readers newly think and imagine along the lines set out in the Scriptures. Time and again, as Richard Hays masterfully showed (in Echoes of Scripture in the Letters of Paul, and Echoes of Scripture in the Gospels), the authors resort to a technique called metalepsis. That is, in quoting or near quoting a few words or a phrase from their Scriptures, not only are the hearers/readers meant to understand that it is a quotation, but to import the sense of the entire passage or even book from which that miniature quotation emerges. It was Richard Hays’s groundbreaking work on this literary hermeneutical aspect which caused a sensation in New Testament studies in the 1980s and 1990s when it first emerged, because it opened up whole new lines of interpretation, without any question remaining about their veracity. What it means is that, as we read the New Testament, we have constantly to be aware of what Scriptures the writer had in mind, either consciously or semi-consciously, in order to allow that thought-world to permeate our reading. It is a reminder, whatever we are reading or watching or listening to, never to be too reductive about our own cultural horizons when we approach such a text, but to be listening and open and willing to be enlarged by the life-world of the text before us, as the great philosopher Paul Ricoeur used to say.  

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