Binance co-founder and former CEO Changpeng “CZ” Zhao has shot down crypto critic Peter Schiff’s plan to launch a tokenized gold product, calling it a “Trust Me Bro” asset.
On a Thursday Post In X, CZ said that tokenized gold is not onchain gold, but a promise dependent on third-party custody. “Tokenizing that you trust some third party will give you gold at a later date … even after their management changes, perhaps decades later, in a war,” he wrote.
CZ’s comments came after Schiff, a long-time bitcoin (BTC) gold critic and advocate, announced plans on the Threadguy podcast to roll out a gold-backed token.
According to Schiff, users can buy and store gold in a vault through 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.
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Bitcoin will eventually go to Zero: Schiff
Schiff too maintaining his decades-long bearing That bitcoin (BTC) has no intrinsic value and will eventually “go to zero.” He says Bitcoin is a “huge pump-and-dump” driven by early adopters at the expense of newer investors.
“I still think it’s going to zero,” he said. “What I underestimated was the ease of the public and the marketing savvy of those promoting it.”
Schiff also warned of a looming “sovereign debt crisis” that he believed would dwarf 2008, Forecasting hyperinflationa fall in US Treasury bonds and gold prices rising above $4,000 per ounce.
He said the dominance of the US dollar as the world’s reserve currency was nearing its end, predicting that the global financial system would “inevitably return to gold.” Foreign central banks are already withdrawing from US Treasurys and quietly replacing their reserves with physical gold, marking a “financial reset” similar to the post-Nixon 1970s, Schiff added.
Related: Bitcoin taps $110k as BTC price diverges from gold’s 5% correction
Gold loses $2.5 trillion in market cap after record surge
Earlier this week, gold saw one of its sharpest crashes in decades, shedding nearly $2.5 trillion in value in 24 hours, according to Kobeissi’s letter. The metal fell 8% in two days, the worst decline since 2013, wiping out more market value than the entire supply of bitcoin.
The sell-off followed a period of rapid gains this year, when gold advanced 60% as investors Flocked here amid fears of inflation and global instability.
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