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
Awe and wonder
Culture
5 min read

The late Pope Francis was right – Antoni Gaudi truly was God’s architect

Sanctity can indeed be found amongst scaffolding, as Gaudi’s Barcelona beauties amply demonstrate.

Jonathan is Team Rector for Wickford and Runwell. He is co-author of The Secret Chord, and writes on the arts.

Looking up at the front of Gaudi's cathedra; as the sun comes out from behind the spires.
Sagrada Familia cathedral, Barcelona.
Csaba Veres on Unsplash.

Barcelona is a magnet for tourists and art lovers because of the sense of exuberance and abundance created by the sinuous, sensuous curves and colours of Antoni Gaudí i Cornet’s amazing buildings. Whether we are encountering the shifting sea-like blues of the Casa Batlló, the abstract collage of the wave-like trencadis mosaic bench at Park Güell, the whirlpool-like undulations on the ceiling at Casa Milà, the columns in the Crypt of Colònia Güell which form a wood of trees, or the sunflower forms on the ceiling of the Sagrada Familia, Gaudí's work possesses an ecstatic sense of natural beauty. The Sagrada Familia, his still unfinished magnum opus, attracts over 4.5 million visitors a year, 85 per cent of whom come from outside Spain. 

Known as ‘God’s Architect,’ Gaudí, in one of the last acts by the late Pope Francis, was declared Venerable, a step on the path to sainthood. He was recognised for the heroic virtues which encompass faith, hope, and charity, with Divine charity being paramount. The Vatican’s announcement noted that when Gaudí  accepted the task of directing the project of the Basilica of the Sagrada Familia in 1883, his focus was “making art a hymn of praise to the Lord” and “he considered it his mission to make God known and bring people closer to Him”. Also noted was the humility of his death after being struck a tram on June 7, 1926. Unrecognized, the architect was taken to the Hospital de la Santa Creu, the city’s hospital for the poor and, after receiving the last sacraments, he died three days later, on June 10. Around 30,000 people then attended his funeral. 

The Sagrada Familia is primarily experienced as a forest of columns through which light falls in glowing colours. As in medieval cathedrals the eye is drawn upwards towards the light and glory of God, here by means of slender trunk-like columns, which branch (for reasons of form and function) before the ceiling of the basilica, where natural and artificial light mingle in star-like shapes resembling sunflower heads. Lower down, the abstract stained glass of Joan Vila-Grau filters the blazing natural light of the Catalan sun through primary colours to create a sense of mystery even among the thousands of tourists crowding the space for the best camera angles. 

Among the columnar forest and stained light (if one ignores the baldachin, which is an example of the gaudy Gaudí), there is an almost total absence of explicit Christian iconography, creating a special interior sense of spiritual space. Unlike a medieval cathedral where the Christian story is told inside in stained glass, Gaudí placed the narrative element on the exterior of the building to form a Bible written in stone through three facades: Nativity, Passion and Glory. 

Much of Gaudí's work was marked by his big passions in life: architecture, nature and his Catholic faith. He integrated into his architecture a series of crafts in which he was skilled - ceramics, stained glass, wrought ironwork and carpentry - and introduced new techniques in the treatment of materials, such as trencadis, a special type of mosaic made of waste ceramic pieces. 

After a few years under the influence of neo-Gothic art and Oriental techniques, Gaudí became part of the Modernista movement which was reaching its peak in the late 19th and early 20th centuries. His work transcended mainstream Modernism, culminating in an organic style inspired by nature. He was the great sculptor, utilising natural form in his work both for utilitarian and aesthetic reasons. He described nature as “the Great Book, always open, that we should force ourselves to read” and, as the art critic Robert Hughes recognised, thought that “everything structural or ornamental that an architect might imagine was already prefigured in natural form, in limestone grottoes or dry bones, in a beetle's shining wing case or the thrust of an ancient olive trunk.” 

It is said that Gaudí’s aim at the Sagrada Familia was to bring heaven and earth together. 

Although driven, single and celibate Gaudí was not an ascetic loner. He surrounded himself with work colleagues to whom he gave significant responsibility. He was also well aware that work on the Sagrada Familia could only be completed by the architects, sculptors and craftspeople who would follow his team and plans. Gaudí and his primary patron, Eusebi Güell, were men of great vision and vast ambition, resulting, among other accomplishments, in the Crypt of Colònia Güell, which consists only of the lower nave of what was intended to be a larger building. Their example suggests that to reach for the impossible and fail can nevertheless result in significant achievement. 

The Crypt of Colònia Güell is a culminating point in Gaudi's work, where he included for the first time practically all of his architectural innovations. He said that without the large-scale experiments he undertook there, he would not have dared apply those same geometries to the Sagrada Familia. It is the place where, according to Japanese architect, Arata Isozaki, he “overcame all established limits regarding shapes.” 

This church of Colònia Güell was blessed by the Bishop of Barcelona in 1915 and today functions both as parish church and tourist attraction. Like the Sagrada Familia, albeit on a smaller more intimate scale, its varied columns form a wood of trees. Flower-like, cross-shaped stained glass in primary colours creates a warmth to the space which is complemented by the red brick forming the walls and catenary arches of this cave-like space.  

This is a warm, womb-like enclosure; intimate yet archetypal. It is real and usable communal space while also being of great architectural worth, innovation and beauty. Here the ‘heaven in ordinarie’ of the Eucharist is celebrated in the surround of natural forms recreated by man-made means. It is said that Gaudí’s aim at the Sagrada Familia was to bring heaven and earth together. It may well be that this aim is more fully realised in the earthy intimacy of the Colònia Güell’s wooded Crypt than in the soaring grandeur of the Sagrada Familia. 

In welcoming the news that Gaudí had been declared Venerable, Cardinal Juan José Omella, Archbishop of Barcelona, said “It is a recognition not only of his architectural work but something more important.” He continued: “He is saying you... amid life's difficulties, amid work, amid pain, amid suffering, are destined to be saints.” Ultimately, he notes, “Gaudí’s life and work show us how beauty and holiness can transform the world” as they include the “recognition that sanctity can be found amid scaffolding, suffering, sublime obsession.”

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