**Changpeng Zhao (CZ) Responds to Peter Schiff’s Tokenized Gold Plans**
Changpeng Zhao (CZ), founder and former CEO of Binance, has shared his thoughts on recent news involving gold proponent Peter Schiff. Schiff recently announced plans to launch a tokenized gold product, signaling a notable shift in his stance. After years of dismissing Bitcoin (BTC)—even forecasting an imminent price crash—Schiff is now embracing blockchain technology to make gold more accessible and transferable.
### CZ’s Critique of Tokenized Gold
CZ responded with a pointed critique, not attacking gold itself but highlighting what he sees as a hype mismatch. While tokenized gold might sound revolutionary, CZ emphasized that such products often represent little more than a digital claim on vaulted metal, dependent on a central custodian.
He pointed out that individuals typically do not hold the actual gold “on-chain.” Instead, the token essentially acts like a bank promissory note promising to return deposits. This model carries risks: if the issuer goes bankrupt, is hacked, or changes ownership, the guarantees could fail. Though physical gold endures, promises tied to it do not always hold firm.
CZ questioned whether third parties can reliably deliver on these promises years into the future, especially amid wars and economic turmoil. He famously dubbed Schiff’s proposed product a “trust me bro” token, summarizing the core trust issue at play.
According to CZ, this challenge explains why no tokenized gold product has truly taken off. The debate centers on the fundamental promise of blockchain: while Schiff markets convenience married with gold, CZ warns that genuine innovation does not outsource trust.
### Schiff Faces More Criticism Amid Gold Price Drop
Meanwhile, Schiff has encountered criticism from within the cryptocurrency community following gold’s plunge to record lows on Wednesday, October 22, 2025.
As reported by U.Today, veteran crypto trader Peter Brandt took a playful jab at Schiff by sharing a historical gold price chart. Brandt’s data illustrates that gold investors have endured long and deep price consolidations over decades, despite an average annual return of 3.6% over the past 45 years.
Contrasting sharply with this reality, Schiff recently predicted that gold could soar to $6,000 by Christmas, outperforming Bitcoin and the S&P 500. However, gold instead trended downward, falling below $4,100 on Wednesday, which fueled skepticism around Schiff’s forecast.
### Bitcoin Remains Volatile but Shows Signs of Recovery
In contrast to gold’s struggles, Bitcoin continues to experience volatility but has shown some signs of recovery. Over the past 24 hours, BTC’s price increased slightly by 1.17%, reaching $109,629.
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This ongoing discussion highlights contrasting views within the crypto and precious metals communities on the future of digital assets and the role of trust in tokenization efforts.
https://u.today/cz-reveals-real-reason-tokenized-gold-has-not-taken-off
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