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
AI
Belief
Culture
Mental Health
Pride
4 min read

Are AI chatbots actually demons in disguise?

Early Christian thinkers explain chatbots better than Silicon Valley does

Gabrielle Thomas is Assistant Professor of Early Christianity and Anglican Studies at Emory University

An AI image of a person stood holding a phone with a bubble above their head, below them is a chatbot-like demon with a tail
Nick Jones/Midjourney.ai.

AI Chatbots. They’re here to save us, aren’t they? Their designers argue so, fervently. There’s no doubt they are useful. Some, like EpiscoBOT (formerly known as ‘Cathy’), are designed for those asking ‘life’s biggest questions. 'Our girlfriend Scarlett’, is an AI companion who “is always eager to please you in any way imaginable.”  So why not defend them?  

 They offer companionship for the lonely, spark creativity when we run on empty, and make us more productive. They also provide answers for any and every kind of question without hesitation. They are, in short, a refuge. Many chatbots come with names, amplifying our sense of safety. Names define and label things, but they do far more than that. Names foster connection. They can evoke and describe a relationship, allowing us to make intimate connections with the things named. When the “things” in question are AI chatbots, however, we can run into trouble.  

According to a study conducted by researchers at Stanford University, chatbots can contribute to “harmful stigma and dangerous responses.” More than this, they can even magnify psychotic symptoms. The more we learn, the more we are beginning to grasp that the much of the world offered by AI chatbots is an illusory one.  

Early Christian thinkers had a distinct category for precisely this kind of illusion: the demonic. They understood demons not as red, horned bodies or fiery realms, but as entities with power to fabricate illusions—visions, appearances, and deceptive signs that distorted human perception of reality. Demons also personified pride. As fallen angels, they turned away from truth toward themselves. Their illusions lured humans into sharing that pride—believing false greatness, clinging to false refuge. 

 Looking back to early Christian approaches to demonology may help us see more clearly what is at stake in adopting without question AI chatbots. 

  

According to early Christian thinkers, demons rarely operated through brute force. Instead, they worked through deception. Athanasius of Alexandria (c. 296–373) was a bishop and theologian who wrote Life of Antony. In this, he recounted how the great desert father was plagued by demonic visions—phantoms of wild beasts, apparitions of gold, even false angels of light. The crucial danger was not physical attack but illusion. Demons were understood as beings that manufactured appearances to confuse and mislead. A monk in his cell might see radiant light and hear beautiful voices, but he was to test it carefully, for demons disguise themselves as angels. 

Evagrius Ponticus (c. 345–399), a Christian monk, ascetic, and theologian influential in early monastic spirituality, warned that demons insinuated themselves into thought, planting ideas that felt self-generated but in fact led one astray. This notion—that the demonic is most effective when it works through appearances—shaped the entire ascetic project. To resist demons meant to resist their illusions. 

 Augustine of Hippo (354–430) was a North African bishop and theologian whose writings shaped Western Christianity. In his book The City of God, he argued that pagan religion was largely a vast system of demonic deception. Demons, he argued, produced false miracles, manipulated dreams, and inspired performances in the theatre to ensnare the masses. They trafficked in spectacle, seducing imagination and desire rather than presenting truth. 

 AI chatbots function in a strikingly similar register. They do not exert power by physical coercion. Instead, they craft illusion. They can produce an authoritative-sounding essay full of falsehoods. They can create images of people doing something that never happened. They can provide companionship that leads to self-harm or even suicide. Like the demonic, the chatbot operates in the register of vision, sound, and thought. It produces appearances that persuade the senses while severing them from reality. The risk is not that the chatbot forces us, but that it deceives us—just like demonic powers. 

Using AI chatbots, too, tempts us with illusions of pride. A writer may pass off AI-generated work as their own, for example. The danger here is not simply being deceived but becoming complicit in deception, using illusion to magnify ourselves. Early Christian theologians like Athansius, Evagrius and Augustine, warned that pride was the surest sign of demonic influence. To the extent that AI tempts us toward inflated images of ourselves, it participates in the same pattern. 

When it comes to AI chatbots, we need a discipline of discernment—testing whether the images and texts bear the marks of truth or deception. Just as monks could not trust every appearance of light, we cannot trust every image or every confident paragraph produced by the chatbots. We need criteria of verification and communities of discernment to avoid mistaking illusion for reality. 

Help is at hand.  

Through the ages, Christians have responded to demonic illusions, not with naïve credulity nor blanket rejection of the sensory world, but through the hard work of discernment: testing appearances, cultivating disciplines of resistance, and orienting desire toward truth.  

 The Life of Antony describes how the monk confronted demonic illusions with ascetic discipline. When confronted by visions of treasure, Antony refused to be moved by desire. When assailed by apparitions, he remained in prayer. He tested visions by their effects: truthful visions produced humility, peace, and clarity, while demonic illusions provoked pride, disturbance, and confusion. We can cultivate a way of life that does the same. Resisting the illusions may require forms of asceticism: fasting from chatbots and cultivating patience in verification.  

Chatbot illusions are not necessarily demonic in themselves. The key is whether the illusion points beyond itself toward truth and reality, or whether it traps us in deception.  

Support Seen & Unseen

Since Spring 2023, our readers have enjoyed over 1,500 articles. All for free. 
This is made possible through the generosity of our amazing community of supporters.

If you enjoy Seen & Unseen, would you consider making a gift towards our work?
 
Do so by joining Behind The Seen. Alongside other benefits, you’ll receive an extra fortnightly email from me sharing my reading and reflections on the ideas that are shaping our times.

Graham Tomlin
Editor-in-Chief