Article
Culture
Economics
Ethics
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. 

Article
Art
Culture
Trauma
War & peace
5 min read

Forgotten soldiers and new narratives are shaping how we mark our wars

Writing our history of conflict is as much a war of images as of words.

Susan is a writer specialising in visual arts and contributes to Art Quarterly, The Tablet, Church Times and Discover Britain.

An actor reads a speech at a commemoration
Timothy Spall recites Churchill.
Sky News.

Heading into an intense summer of World War Two remembrance, with May’s commemoration of the 80th anniversary of VE Day followed by marking the end of war in the Far East in August, it is remarkable how well the essentially Edwardian model of honouring the war dead has stood the test of time. 

In The Edwardians Age of Elegance exhibition, at the King Gallery’s, a room is devoted to the passing of the extravagant turn-of-the-century era into the sombre age of war memorialisation, following World War One. George V commissioned traditional English artist Frank O Sullivan to paint the inaugural service for the Unknown Warrior in Westminster Abbey. The long canvas, with a domed frame at the centre to accommodate Edwin Lutyens’ freshly unveiled, lofty Cenotaph, captures the solitary King walking behind a flag draped coffin, mounted on a gun garage, as the parade passes the war memorial. Initially a temporary wood and plaster structure, Lutyens’ Portland stone monument commemorated over a million soldiers lost in the Great War, some buried near the battlefields near where they fell, and nameless others whose remains had been obliterated by mechanised warfare. 

Attended by widows, ex-servicemen and armed forces personnel, the 1920 Armistice Day ceremony marked a shift away from solely glorifying commanders and officers, placing the sacrifice of ordinary combatants centre stage. The monarch symbolised his gratitude to his people, rather the other way around. 

Ceremonial Great War gun carriages featured in the London VE Day parade on 5th May. And the King’s Troop, Royal Horse Artillery provides gun carriages and teams of six black horses for state funerals. Following World War Two, and complete mechanisation of artillery, George VI instituted a troop of horse artillery for ceremonial occasions, enshrining the continuation of practices from a previous era’s warfare. 

Layering memorialisation upon memorialisation was also evident in the 5th May ceremonies when actor Timothy Spall read an extract of Churchill’s Whitehall speech, given to the crowds when European hostilities ended.  

“In the long years to come, not only will the people of this isle, but of the world wherever the bird of freedom chirps in human hearts, will look back on what we have done and they will say do not despair, do not yield to violence and tyranny, march straight forward and if needs be, die unconquered.”  

Narratives around the present and recent past are codified with a focus on forecasting how future generations will view events when looking back.  

While Europe celebrated in early May 1945, the one million troops of the Fourteenth Army continued fighting the Japanese Army through Burma and the Pacific. Dubbed the Forgotten Army and the Forgotten War, their campaigns were underplayed in the Allies’ wartime narrative. Singapore’s fall to Japanese forces in February 1942 was seen as a shameful defeat. Remoteness from London of the Far East campaign, and the vastness of the theatre of war, made it near impossible to report on by radio and print journalists. Letters to and from the Fourteenth Army took months to reach their destinations.  Soldiers and civilians held as prisoners of war by Japanese forces were forbidden to make images or create records of their captivity, making contemporaneous images of their incarceration rare. But drawings of camps and hospitals by Jack Chalker hidden in hollowed out bamboo sticks, acted as preparatory works the artist to later make paintings such as his painting Medical Inspection, Chungkai Hospital Camp 1943, created in 1946, and now held by the Royal Army Museum. 

As traditions of commemorating the war dead evolve, new grey areas come to light, demanding space in the official narrative 

Contrasting the paucity of images of the war in the Far East, with the array of works depicting the Blitz in London - created with  American audiences in mind, in the hope of winning support for the Allied cause - together with photographic images of North African and Middle East operations, it is little wonder the Forgotten War struggles to be remembered. Veterans of the Far East campaign and POWs were far more likely to join ex services organisations such as the British Legion and Burma Star, than those who served in Europe. Marginalised from victory and peacetimes narratives, the Forgotten Army chose to remember together. 

Before Victory over Japan’s 80th anniversary is commemorated on 15 August, with the famous cover photo of an American sailor dramatically embracing a woman in a white dress showing on repeat, the 80 years since the dropping of atomic bomb on Hiroshima and Nagasaki will have to be faced. Mainly civilians died as a result of impact and sickness from the bombing of Hiroshima on 6 August and Nagasaki on 9 August, with estimates of between150,000 -246,000 deaths. Whether the only use of nuclear weapons in warfare was justified, as it prevented loss of life from not having to wage a military campaign to occupy mainland Japan, or the horrific sacrifice of so many civilians was a war crime, remains a morally grey area. 

As traditions of commemorating the war dead evolve, new grey areas come to light, demanding space in the official narrative. Actress Sheila Hancock wrote recently about the trauma and fear of being an evacuee, sent away from her London family as a small child, to an emotionally neglectful home in the ‘safer’ countryside. Forced adoption of children born to lone mothers, and the stigmatising treatment expectant women received at the hands of Christian denomination- ran mother and baby homes, is a wartime and postwar story now demanding to be heard. 

Lesser documented stories of marginalised civilians, and combatants in faraway places take time to emerge, fighting to be heard above familiar images of plucky cockneys in bombed out buildings and amorously celebratory sailors. Shaping a multifaceted history of conflict is as much a war of images as of words. And as families become more transnational, the search for a shared narrative can replace clinging to the right or official story. 

The idea of army chaplain, the Reverend David Railton, to commemorate an Unknown Warrior with honour, still resonates over a century later. Railton’s battlefield altar cloth, known as the Padre’s or Ypres Flag, covered the coffin on its journey from Boulogne to Westminster Abbey. 

Stretching and fraying to include the stories of groups previously overlooked, the Edwardian fabric of military remembrance is proving remarkably strong. 

 

The Edwardians: Age of Elegance, the King’s Gallery, until 23 November.

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