Changpeng “CZ” Zhao, the co-founder and ex-CEO of Binance, has openly criticized Peter Schiff’s forthcoming tokenized gold initiative, labeling it as a mere “trust me bro” asset.

In a post on X this past Thursday, CZ argued that the tokenized gold is not actually gold stored on a blockchain but merely a promise that necessitates reliance on third-party custody. He stated,

“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.”
“Esto significa que estás tokens en algo que confiamos a un tercero para que nos proporcione el oro en una fecha posterior… incluso después de que cambie su gestión, tal vez décadas después, durante una guerra.”

CZ’s remarks followed Schiff’s announcement on the ThreadGuy podcast about his plans to introduce a gold-backed token. Schiff mentioned that buyers could keep gold in a vault using an app, transfer ownership via a blockchain, or exchange it for physical gold.

Additionally, Schiff has insisted that Bitcoin will inevitably go to zero, describing it as devoid of intrinsic value and a major scheme where early investors profit at the cost of newcomers.

“I still think it’s going to zero,” he stated, emphasizing the public’s gullibility and the marketing prowess of Bitcoin’s promoters.
“Todavía creo que va a cero,” afirmó, enfatizando la credulidad del público y la astucia de marketing de quienes lo promueven.

Schiff warns that a sovereign debt crisis looms, likely to surpass the one in 2008, and predicts dire consequences for U.S. financial standings. He suggests a return to a gold-based global economy is on the horizon as countries begin to divest from U.S. Treasuries in favor of physical gold, indicating a similar monetary reset to that of the early 1970s.

Earlier this week, gold experienced a significant crash, losing approximately $2.5 trillion in market capitalization within just 24 hours, marking one of its most severe declines since 2013.