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**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

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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**Related:**
– Can Bitcoin recover as gold plunges from record highs? Analysts weigh in
– Bitcoin taps $110K as BTC price diverges from 5% gold correction
https://cointelegraph.com/news/cz-calls-peter-schiffs-tokenized-gold-trust-me-bro-asset?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

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CZ Reveals Real Reason Tokenized Gold Has Not Taken Off

CZ calls Peter Schiff’s tokenized gold a ‘trust me bro’ asset