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. 

Review
Addiction
Culture
Film & TV
Monastic life
5 min read

Mother Vera: from heroin addict to heroine helping the recovering

The horse-loving orthodox sister with a liturgy for life, and a dilemma.

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

A nun on a white horse, gallops across a snowy field, in black and white
Equine therapy.
She Makes Productions.

Across the arts, the recovery journeys of people with addiction and mental health issues are being re-narrated, giving voice to the navigators of their own personal transformation. In Mother Vera, the Grierson award winning documentary about a recovery community surrounding the Saint Elizabeth Monastery in Minsk, ritual and nature’s unfolding therapeutic power take centre stage. 

From Sister Act I and II, to The Sound of Music and Black Narcissus, big screen depictions of women’s monastic life tend to be overwrought. But Mother Vera is different. Shot in black and white, Cécile Embleton and Alys Tomlinson’s documentary visually pays subtle homage to Black Narcissus’ bell tower scene, with a nod to Citizen Kane here and a wink to Andrei Tarkovsky there, but the overall tone is sober, in every sense of the word. 

At the heart of the film is charismatic Mother Vera, a horse-loving orthodox nun, whose story of heroin addiction and betrayal by her onetime partner is micro dosed throughout the film. Surrounding Vera are a team of world-weary men, who she organises into readers for the monastery’s liturgies, as well as directing them in caring for the community’s cows and horses. They declare themselves “snowed in” by the monastic routine of “processions and liturgies” and relentless rounds of physical labour: shovelling snow and ice, feeding and grooming the animals. But the recovery community also acknowledges the bounded routines of the monastery keep them alive, able to face down their longing for drugs and drink. The rhythm of the natural world is woven into the liturgical year as Christmas cribs are replaced with Easter celebrations, all linked by scenes of candlelight, prayers and genuflections.

Early on in the film, Vera slips a puffa jacket over her black habit and gallops across the snow on a white horse. Without giving away too many spoilers, Vera’s desire for a life beyond the borders of the monastery grows as her story develops. Visits to her family show adolescent nephews and godsons growing into strapping maturity in her absence. Her mother relates the time Vera overdosed, 20 years ago, and doctors told her “to prepare for every outcome.” Vera reflects on how her charisma influenced “fresh faced girls” to become heroin users. For Vera, heroin went from being a portal of insight and revelation, to “showing its true face” which was diabolic. In monastery community meetings men praise how Mother Vera helped them to “reconstruct”. 

Vera initially joined the monastery for a year, to wait out her partner’s prison sentence. Twenty years on, she has reached a new phase of her own reconstruction. Immersing herself in a river, her parting words are: “Let’s move on. Let’s continue. Amen.” 

The community at Saint Elizabeth Monastery echoes the residents of W-3, the psychiatric ward in the American teaching hospital described in Bette Howland’s memoir W-3 first published in 1974, and republished four years ago. The author is admitted to hospital following an overdose, while she struggles to raise two children alone, on a part time librarian’s wage, while also trying to write. “For a long time it had seemed to me that life was about to begin – real life. But there was always some obstacle in the way. Something to be got through first, some unfinished business; time to be served, a debt to be paid. Then life could begin. At last it had dawned on me these obstacles were my life. I was always rolling these stones from my grave.” 

Howland positions the institutionalised rhythms of the hospital as the supreme life force, and ultimately more curative than talking therapy or medication. “For the sick in their beds were invisible. They were there only by implication. They must have existed, if only for the sake of this other life, full of importance – the bustling arms, starched coats; the carts, mops, ringings, beepings; the brisk comings and goings of white stockinged nurses.” The invisible, timeless guiding spirit of the hospital “as mysterious as a submarine”, would prevail regardless of what the medical staff or patients did, or resisted doing. Realising they were not the ones calling the shots, was the first step for Howland and her fellow patients to returning to life outside the hospital. 

Accepting community and kinship, rather than superiority or aloofness, with others in recovery is also a key feature of Saint Elizabeth Monastery and W-3. “Nothing was original on W-3, that was its truth and beauty,” writes Howland. And continually telling and re-telling her story to fresh batches of medical students, under a psychiatrist’s supervision, eventually allowed it to be transcended. “It is not strictly accurate to say that these interviews were of no use to us. Because you would have to tell your story yet once more, all over again. And each retelling, each repetition, hastened the time when you would get tired of it, bored with it, done with it – let go of it, drop it forever – could float away and be free.”  

In Mother Vera members of the lay community argue about accepting a new member, who may have been raped in prison, and is labelled a “downcast”. But the argument against allowing prison hierarchies to overshadow their new community wins the day, with the new member being integrated, and objectors accepting “you are no better than him.” 

Contemporary approaches to mental health and wellbeing also pivot on an acceptance of shared humanity and imperfect day to day life with its relentless demands, as well as acknowledgement of a power outside human control. In the Netflix documentary Stutz, actor Jonah Hill charts his sessions with Hollywood psychotherapist Phil Stutz. Stutz counsels his clients there is no escape from pain, uncertainty and hard work. To try to avoid these conditions, whether through fantasy or substance or addiction, is to live in the Realm of Illusion. Progress and satisfaction can only be achieved by embracing the here and now, and doing the next necessary thing for life to continue. Stutz calls these actions the String of Pearls, urging his clients to be the one to put the next pearl on the string. The outcome of the action is immaterial, it is the self -belief fostered by taking real world positive action in support of self-flourishing, that is critical. 

Stutz believes in a force for good he calls Higher Forces, and a malign force thwarting human growth he calls Part X. For Mother Vera her latter days at the monastery when she felt she could be of more service in the outside world were “tricking God”.   

From a Minsk monastery to a Hollywood therapist’s office, to a 1970s hospital, an acknowledgement of the divine, together with an embrace of each other and demands of daily life, emerge as key tenets of recovery’s long road. 

 

Mother Vera is released in the UK from 29 August.

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