**Changpeng Zhao (CZ) Responds to Peter Schiff’s Tokenized Gold Plans**
Changpeng Zhao (CZ), founder and former CEO of Binance, has recently commented on Peter Schiff’s announcement regarding a tokenized gold product. Schiff, a well-known gold proponent, is making a notable pivot by embracing blockchain technology to tokenize gold, aiming to make it more accessible and transferable. However, CZ remains skeptical about the idea.
### CZ Critiques the Tokenized Gold Concept
For years, Peter Schiff has dismissed Bitcoin (BTC), even recently forecasting an imminent crash in its price. Now, with his plans to create a tokenized gold product, he appears to be adopting blockchain technology—albeit for gold rather than cryptocurrencies.
CZ’s response, however, was a pointed critique of what he sees as a mismatch between hype and reality. He clarified that his criticism was not aimed at gold itself, but at the tokenization model. According to CZ, tokenized gold often amounts to little more than a digital claim on physical gold held by a central custodian. In other words, individuals do not truly hold gold “on-chain.” Instead, it resembles a bank promise to return deposits.
The risk lies in trusting the issuer: if they go bankrupt, get hacked, or change ownership, the guarantees tied to these tokens could fail. While physical gold endures through time, CZ pointed out, such promises may not. He questioned whether a third party could reliably deliver on their commitments years down the line, especially amid wars and economic disruptions.
Describing the proposed product as a “trust me bro” token, CZ suggested this inherent trust risk explains why no tokenized gold project has truly taken off. This touches on a broader debate about blockchain’s promise. Schiff’s approach offers convenience with a gold twist, but CZ reminds the community that true innovation in blockchain lies in removing the need to outsource trust.
### Peter Schiff Faces Additional Criticism Following Gold’s Price Drop
Meanwhile, Peter Schiff has come under more fire within the cryptocurrency ecosystem after gold prices plunged to record lows on Wednesday, October 22, 2025.
A report by U.Today highlighted commentary from veteran crypto trader Peter Brandt, who took a playful jab at Schiff. Brandt shared a historical chart illustrating that gold investors have endured a difficult journey, often facing deep and long-lasting consolidations over the years. Despite this, gold has averaged a modest annual return of 3.6% over the past 45 years.
Interestingly, Schiff had predicted earlier this month that gold could soar to $6,000 by Christmas, outperforming both Bitcoin and the S&P 500. Contradicting this forecast, gold’s price dipped below $4,100 on Wednesday, fueling recent skepticism and criticism.
On the other hand, Bitcoin continues to experience volatility but is showing signs of recovery. Over the past 24 hours, BTC’s price marginally increased by 1.17%, reaching $109,629.
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As Schiff ventures deeper into blockchain-based gold products, the debate on trust, innovation, and the future of tokenized assets is sure to intensify. Meanwhile, market movements keep testing the forecasts of both gold and cryptocurrencies alike.
https://u.today/cz-reveals-real-reason-tokenized-gold-has-not-taken-off
