Changpeng “CZ” Zhao, co-founder and former CEO of Binance, criticized Peter Schiff’s proposed tokenized gold product, labeling it a “trust me bro” asset. CZ argued that tokenized gold is not truly on-chain gold but rather a promise reliant on third-party custody. In a post on X, he highlighted the risks of trusting intermediaries to deliver physical gold in the future, especially through management changes or geopolitical turmoil. Schiff, a prominent Bitcoin skeptic and gold advocate, plans to launch a gold-backed token enabling users to buy and store gold in vaults via an app, transfer ownership on a blockchain, or redeem physical gold. He envisions this digital gold as an easy method to spend gold, including through linked debit cards. Schiff also reiterated his belief that Bitcoin will ultimately go to zero, calling it a pump-and-dump scheme benefiting early adopters at the expense of newer investors. He warned of a significant sovereign debt crisis that could spur hyperinflation, collapse US Treasury bonds, and drive gold prices above $4,000 per ounce. Predicting the decline of the US dollar as the global reserve currency, Schiff foresaw a monetary reset with central banks shifting reserves into physical gold, echoing post-Nixon financial shifts. Meanwhile, gold recently experienced a sharp crash, losing $2.5 trillion in market cap over two days, its biggest drop since 2013, following a surge driven by inflation concerns and global instability.