**Changpeng Zhao (CZ) Comments on Peter Schiff’s Tokenized Gold Plans**
Changpeng Zhao (CZ), founder and former CEO of Binance, recently shared his thoughts on gold advocate Peter Schiff’s announcement of a new tokenized gold product. Schiff, who has historically been critical of Bitcoin (BTC) and even predicted an imminent price crash, is now embracing blockchain technology to make gold more accessible and transferable through tokenization.
**CZ Reacts to Peter Schiff’s Gold Tokenization**
Schiff’s pivot towards blockchain represents a significant shift. However, CZ remains skeptical about the actual innovation behind tokenized gold. He pointed out that although the idea of tokenized gold may sound revolutionary, it often boils down to a digital claim on physical gold stored in vaults—meaning it relies heavily on a central custodian.
CZ emphasized that the gold itself does not reside “on-chain.” Instead, holding tokenized gold is akin to having a bank promise to return your deposits. This system is vulnerable: if the issuer faces bankruptcy, hacking, or ownership changes, the token holders’ guarantees can fail. Physical gold, on the other hand, endures over time, while such promises may not.
Highlighting long-term risks, CZ questioned whether third parties can be trusted to uphold their promises through future wars and economic instability. He humorously labeled the proposed product a “trust me bro” token, stressing why tokenized gold hasn’t truly gained traction.
This critique taps into a broader debate about blockchain’s promise. While Schiff aims to offer convenience combined with the allure of gold, CZ reminds the community that genuine blockchain innovation should not depend on outsourcing trust to intermediaries.
**Peter Schiff Faces Additional Criticism Amid Gold Price Drop**
Meanwhile, Schiff’s standing within the cryptocurrency space has come under renewed scrutiny following a significant drop in gold prices. On Wednesday, October 22, 2025, gold plunged to record lows, surprising many investors.
Veteran crypto trader Peter Brandt weighed in on the situation, sharing a historical chart that illustrates the challenging investment journey gold investors have faced. Despite an average annual return of 3.6% over the past 45 years, gold has experienced lengthy periods of deep consolidation.
Earlier this month, Schiff forecasted that gold prices could soar to $6,000 by Christmas, potentially outperforming Bitcoin and the S&P 500. However, the recent downtrend saw gold dip below $4,100, fueling criticism of his bullish prediction.
In contrast, Bitcoin continues to exhibit volatility but is also showing signs of recovery. Over the past 24 hours, BTC’s price increased modestly by 1.17%, reaching approximately $109,629.
As the debate over tokenized gold and blockchain innovation continues, the crypto community watches closely to see how these contrasting views unfold in the months ahead.
https://u.today/cz-reveals-real-reason-tokenized-gold-has-not-taken-off
