Binance co-founder and former CEO Changpeng “CZ” Zhao has dismissed crypto critic Peter Schiff’s plan to launch a tokenized gold product, describing it as a “trust me bro” asset.
In a post on X Thursday, CZ argued that tokenized gold isn’t truly on-chain gold but rather a promise reliant on third-party custody. “You’re trusting that some third party will hand you gold at a later date — possibly decades later, under new management, or even during a war,” he wrote.
CZ’s remarks followed Schiff’s announcement on the ThreadGuy podcast, where the long-time Bitcoin skeptic and gold advocate revealed plans to introduce a gold-backed token.
Schiff said the product would allow users to purchase and store gold in a vault through an app, transfer ownership via blockchain, or redeem it for physical gold. He described it as a simpler way to spend gold digitally, complete with debit cards linked to users’ gold holdings.
Schiff says Bitcoin will eventually go to zero
Peter Schiff doubled down on his long-held belief that Bitcoin has no intrinsic value and will ultimately “go to zero.” The veteran gold advocate called Bitcoin a “massive pump-and-dump scheme,” claiming it’s fueled by early investors offloading their holdings onto newcomers.
“I still think it’s going to zero,” Schiff said. “What I underestimated was the gullibility of the public and the marketing genius of those promoting it.”
He also warned of an impending “sovereign debt crisis” that he believes will far exceed the 2008 financial meltdown. Schiff predicted soaring inflation, a collapse in U.S. Treasury bonds, and gold prices climbing past $4,000 per ounce.
According to Schiff, the U.S. dollar’s reign as the world’s reserve currency is nearing its end, paving the way for a global “return to gold.” He claimed foreign central banks are already reducing their Treasury holdings and quietly increasing their gold reserves, signaling what he called a “monetary reset” reminiscent of the post-Nixon 1970s.
Gold loses $2.5 trillion after record rally
Earlier this week, gold suffered one of its steepest declines in decades, erasing roughly $2.5 trillion in market value within 24 hours, according to The Kobeissi Letter. The metal plunged 8% over two days — its worst drop since 2013 — wiping out more value than the entire Bitcoin market capitalization.
The sell-off followed months of rapid gains, during which gold surged 60% amid mounting inflation concerns and global economic uncertainty.
