Binance co-founder and former CEO Changpeng “CZ” Zhao has dismissed crypto critic Peter Schiff’s plan to launch a tokenized gold product, calling it a “trust me bro” asset.
In a Thursday post on X, CZ argued that tokenized gold is not “on-chain gold,” but a promise dependent on third-party custody. “It’s tokenizing that you trust some third party will give you gold at some later date… even after their management changes, maybe decades later, during a war,” he wrote.
CZ’s comments came after Schiff, a long-time Bitcoin critic and gold advocate, announced plans on the ThreadGuy podcast to roll out a gold-backed token.
According to Schiff, users will be able to buy and store gold in a vault via an app, transfer ownership through a blockchain, or redeem it for physical gold. He described it as an easier way to spend gold digitally, complete with debit cards linked to gold holdings.
Bitcoin Will Eventually Go to Zero: Schiff's Stance
Schiff also maintained his decades-long stance that Bitcoin has no intrinsic value and will eventually “go to zero.” He said Bitcoin is a “gigantic pump-and-dump” driven by early adopters cashing out at the expense of newer investors.
“I still think it’s going to zero,” he said. “What I underestimated was the gullibility of the public and the marketing savvy of those promoting it.”
Schiff also warned of a looming “sovereign debt crisis” that he believes will dwarf 2008, predicting hyperinflation, a collapse in US Treasury bonds, and gold prices rising well beyond $4,000 per ounce.
He argued that the US dollar’s dominance as the world’s reserve currency is nearing its end, predicting that the global financial system will “inevitably return to gold.” He said foreign central banks are already divesting from US Treasurys and quietly replacing their reserves with physical gold, marking a “monetary reset” similar to the post-Nixon 1970s.
Gold Experiences Significant Market Cap Drop After Surge
Earlier this week, gold saw one of its sharpest crashes in decades, shedding roughly $2.5 trillion in value within 24 hours, according to The Kobeissi Letter. The metal plunged 8% over two days, its worst decline since 2013, wiping out more market value than the entire Bitcoin supply.
The sell-off followed a period of rapid gains this year, when gold surged 60% as investors flocked to it amid inflation fears and global instability.