Binance co-founder and former CEO Changpeng “CZ” Zhao dismissed crypto critic Peter Schiff’s plan to launch a tokenized gold product, calling it a “trust me bro” asset.
In a Thursday post on X, CZ explained that tokenized gold is not on-chain gold but rather a promise dependent on third-party custody. “It’s tokenizing that you trust some third party will give you gold at some later date, even after their management changes, maybe decades later, during a war,” he wrote.
CZ’s comments came after Schiff, a long-time Bitcoin (BTC) critic and gold advocate, announced plans on the ThreadGuy podcast to roll out a gold-backed token. Schiff described it as an easier way to spend gold digitally, complete with debit cards linked to gold holdings.
### Bitcoin Will Eventually Go to Zero: Schiff
Schiff maintained his decades-long stance that Bitcoin has no intrinsic value and will eventually “go to zero.” He called Bitcoin a “gigantic pump-and-dump” scheme driven by early adopters cashing out at the expense of newer investors.
“I still think it’s going to zero,” Schiff said. “What I underestimated was the gullibility of the public and the marketing savvy of those promoting it.”
He also warned of a looming “sovereign debt crisis” that he believes will dwarf the 2008 financial crisis. Schiff predicts hyperinflation, a collapse in US Treasury bonds, and gold prices rising well beyond $4,000 per ounce.
According to Schiff, the US dollar’s dominance as the world’s reserve currency is nearing its end, and the global financial system will “inevitably return to gold.” He noted that foreign central banks are already divesting from US Treasurys and quietly replacing their reserves with physical gold, signaling a “monetary reset” similar to the post-Nixon 1970s.
### Gold Loses $2.5 Trillion in Market Cap After Record Surge
Earlier this week, gold experienced one of its sharpest crashes in decades, shedding about $2.5 trillion in value within 24 hours, according to The Kobeissi Letter. The metal plunged 8% over two days—its worst decline since 2013—wiping out more market value than the entire Bitcoin supply.
This sell-off followed a period of rapid gains this year, during which gold surged 60% as investors flocked to it amid inflation fears and global instability.
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– Bitcoin taps $110K as BTC price diverges from 5% gold correction
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