**Changpeng Zhao (CZ) Critiques Peter Schiff’s Tokenized Gold Plans**
Changpeng Zhao (CZ), founder and former CEO of Binance, recently weighed in on Peter Schiff’s announcement regarding a new tokenized gold product. Schiff, a long-time gold proponent and vocal Bitcoin skeptic, has taken a surprising turn by embracing blockchain technology to make gold more accessible and transferable. However, CZ remains unconvinced by the idea.
### CZ Reacts to Schiff’s Gold Tokenization
For years, Schiff has dismissed Bitcoin (BTC), even forecasting an imminent price crash. Now, by promoting a tokenized gold product, he represents a notable pivot towards blockchain adoption—albeit with a gold twist.
CZ’s response, however, was pointed. He did not criticize gold itself but raised concerns about the “hype mismatch” surrounding tokenized gold. According to CZ, while tokenized gold sounds revolutionary, it typically amounts to little more than a digital claim on vaulted metal that depends on a central custodian. The actual gold isn’t held “on-chain.” Instead, this setup resembles a bank promising to return deposited funds.
This model has inherent risks. If the issuer of the token goes bankrupt, is hacked, or changes ownership, the guarantees can fail. Physical gold endures through time, but promises do not always hold up under pressure. CZ questioned whether these third parties could keep their promises years down the line, especially during wars or economic turmoil.
He dubbed Schiff’s proposed product a “trust me bro” token, highlighting the reliance on trust rather than true decentralization. CZ argued that this reliance on intermediaries is why no tokenized gold product has yet taken off. Ultimately, this debate touches on the broader promise of blockchain technology—while Schiff focuses on convenience with a gold backing, CZ reminds the community that real innovation minimizes outsourced trust.
### Schiff Faces Additional Criticism Amid Gold Price Drop
Meanwhile, Schiff is facing criticism from within the cryptocurrency community following a sharp drop in gold prices on Wednesday, October 22, 2025. A report by U.Today highlighted remarks from veteran crypto trader Peter Brandt, who shared a historical chart illustrating gold’s challenging investment history.
Brandt pointed out that although gold has delivered an average annual return of 3.6% over the past 45 years, it has suffered deep and prolonged consolidation phases, testing investor patience.
Earlier this month, Schiff boldly predicted that gold prices could surge to $6,000 by Christmas, outperforming both Bitcoin and the S&P 500. However, recent market performance tells a different story, with gold prices falling below $4,100 as of October 22, fueling further skepticism about Schiff’s forecast.
In contrast, Bitcoin continues to face volatility but shows signs of recovery. Over the past 24 hours, BTC price experienced a modest increase of 1.17%, reaching approximately $109,629.
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As this debate unfolds, the contrasting views of CZ and Schiff highlight the evolving conversation around blockchain innovation and the future of asset tokenization.
https://u.today/cz-reveals-real-reason-tokenized-gold-has-not-taken-off
