CZ Reveals Real Reason Tokenized Gold Has Not Taken Off
**Changpeng Zhao (CZ) Responds to Peter Schiff’s Tokenized Gold Plans**
Changpeng Zhao (CZ), founder and former CEO of Binance, recently commented on gold proponent Peter Schiff’s announcement regarding a new tokenized gold product. Schiff’s move marks a notable pivot in his long-standing stance against Bitcoin (BTC). Having dismissed Bitcoin for years—recently even forecasting an imminent price crash—Schiff is now embracing blockchain technology to make gold more accessible and transferable through tokenization.
### CZ’s Critique of Tokenized Gold
While CZ did not criticize gold itself, he took aim at what he sees as a hype mismatch surrounding tokenized gold. He explained that although the concept sounds revolutionary, in reality, it often boils down to little more than a digital claim on vaulted physical gold, controlled by a central custodian.
Individuals typically do not hold the gold “on-chain.” Instead, the arrangement resembles a bank promising to return a depositor’s money. This setup carries inherent risks: if the issuer goes bankrupt, is hacked, or changes ownership, these guarantees can fail. CZ also pointed out that while physical gold has enduring value, promises made by third parties do not always hold up—especially amid economic turmoil or war.
He questioned whether these third parties would be able to fulfill their commitments years down the line, dubbing such products “trust me bro” tokens. According to CZ, this lack of trustless innovation explains why no tokenized gold offering has gained significant traction.
This exchange highlights a critical debate about the promise of blockchain technology. While Schiff is emphasizing convenience with a gold-backed twist, CZ is underscoring that true blockchain innovation should not rely on outsourcing trust.
### Peter Schiff Faces Additional Market Criticism
Peter Schiff has also come under scrutiny within the cryptocurrency community following a sharp decline in gold prices on Wednesday, October 22, 2025. According to a report by U.Today, veteran crypto trader Peter Brandt playfully mocked Schiff by sharing a historical gold price chart that illustrates gold’s challenging investment journey.
Despite delivering an average annual return of 3.6% over the past 45 years, gold has experienced long and deep consolidation periods—testing investor patience. This historical perspective puts Schiff’s recent bold prediction into context. Earlier this month, Schiff forecasted that gold could reach $6,000 by Christmas, outperforming both Bitcoin and the S&P 500.
Contrary to his optimistic outlook, gold’s price trended downward to below $4,100 on October 22, fueling criticism of his predictions.
### Bitcoin’s Performance Amid Market Volatility
Meanwhile, Bitcoin continues to face volatility but is showing signs of recovery. Over the past 24 hours, BTC’s price increased modestly by 1.17%, reaching approximately $109,629.
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This debate between traditional gold advocates like Peter Schiff and crypto innovators such as CZ reflects ongoing tensions in the evolving landscape of digital assets and blockchain technology.
https://u.today/cz-reveals-real-reason-tokenized-gold-has-not-taken-off
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