**Changpeng Zhao (CZ) Reacts to Peter Schiff’s Tokenized Gold Plans**
Changpeng Zhao (CZ), founder and former CEO of Binance, recently shared his thoughts on the announcement by gold proponent Peter Schiff regarding a new tokenized gold product. Schiff, known for his long-standing skepticism toward Bitcoin (BTC), has taken a surprising turn by embracing blockchain technology to make gold more accessible and transferable.
### Schiff’s Pivot to Tokenized Gold
For years, Peter Schiff dismissed Bitcoin and even predicted an imminent price crash. However, his latest move involves leveraging blockchain to create a tokenized version of gold. This product aims to combine the benefits of gold with the convenience of digital assets, allowing investors to own “tokenized” gold.
### CZ’s Critical Response
CZ did not criticize gold itself but focused on what he sees as a hype mismatch in tokenized gold products. He pointed out that such tokens often represent nothing more than digital claims on physical gold stored elsewhere, typically relying on a central custodian.
In CZ’s words, individuals would not actually hold the gold “on-chain.” Instead, these tokens resemble promises from banks to return deposits. The risk lies in the potential failure of the issuer—if they go bankrupt, get hacked, or change ownership, the guarantees behind the tokens could collapse. While physical gold endures through time, promises do not always hold up, especially amid wars or economic turmoil.
Because of these concerns, CZ referred to the proposed product as a “trust me bro” token and explained this is why tokenized gold has yet to gain significant traction. His critique highlights a fundamental debate in the blockchain space: true innovation should not outsource trust to third parties.
### Schiff Faces Increasing Criticism as Gold Dips
Meanwhile, Schiff’s bullish stance on gold is under scrutiny following a sharp decline in gold prices on Wednesday, October 22, 2025. A recent report from U.Today highlighted veteran crypto trader Peter Brandt’s playful jab at Schiff, sharing a historical chart that reflects gold’s challenging investment journey.
Despite gold’s average annual return of 3.6% over the past 45 years, the metal has experienced deep and prolonged consolidations, making it a difficult asset to hold through volatile markets. Earlier this month, Schiff boldly predicted that gold could soar to $6,000 by Christmas, outperforming Bitcoin and the S&P 500.
However, gold prices fell below $4,100 on October 22, contrasting sharply with Schiff’s forecast and intensifying criticism from within the cryptocurrency market.
### Bitcoin Shows Signs of Recovery
In contrast, Bitcoin remains volatile but continues to demonstrate resilience. Over the past 24 hours, BTC’s price has risen modestly by 1.17%, reaching $109,629. This recovery fuels ongoing debates about the comparative value and future potential of cryptocurrencies versus traditional assets like gold.
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As the discussion around tokenized gold unfolds, CZ’s skepticism serves as a reminder to critically examine where trust is placed in new financial products, and whether blockchain innovations truly eliminate the need for intermediaries.
https://u.today/cz-reveals-real-reason-tokenized-gold-has-not-taken-off