Changpeng “CZ” Zhao, co-founder and former CEO of Binance, criticized Peter Schiff’s upcoming tokenized gold project, labeling it a “trust me bro” asset. In a recent post on X, CZ argued that tokenized gold isn’t truly onchain gold but a promise reliant on third-party custodians. He emphasized the risks involved, stating it depends on trusting that a third party will provide physical gold at a later date—even decades later and under uncertain conditions like management changes or war.
CZ’s critique followed Schiff’s announcement on the ThreadGuy podcast about his plan to launch a gold-backed token. Schiff proposed that users could buy and store gold in a vault via an app, transfer ownership on the blockchain, or redeem it for physical gold. Additionally, he described a debit card linked to gold holdings for easier digital spending.
Peter Schiff remains a long-time Bitcoin skeptic, reiterating that Bitcoin has no intrinsic value and will ultimately “go to zero.” He characterized Bitcoin as a “gigantic pump-and-dump” scheme benefiting early adopters at the expense of newer investors. Schiff predicted an impending sovereign debt crisis far worse than 2008, expecting hyperinflation, a collapse in US Treasury bonds, and gold prices escalating beyond $4,000 per ounce. He also forecasted the end of the US dollar’s reign as the global reserve currency, anticipating a monetary reset where physical gold regains prominence, similar to post-Nixon era trends.
Recently, gold experienced a sharp 8% decline over two days—its worst since 2013—losing $2.5 trillion in market capitalization, more than the total value of all Bitcoin. This correction followed a rapid surge earlier in the year when gold climbed 60%, driven by inflation concerns and geopolitical instability.
Source: https://cointelegraph.com/news/cz-calls-peter-schiffs-tokenized-gold-trust-me-bro-asset