{"id":408948,"date":"2025-10-23T14:52:34","date_gmt":"2025-10-23T09:22:34","guid":{"rendered":"https:\/\/dripp.zone\/news\/cz-reveals-real-reason-tokenized-gold-has-not-taken-off-crypto-news\/"},"modified":"2025-10-23T15:07:29","modified_gmt":"2025-10-23T09:37:29","slug":"cz-reveals-real-reason-tokenized-gold-has-not-taken-off-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/cz-reveals-real-reason-tokenized-gold-has-not-taken-off-crypto-news\/","title":{"rendered":"CZ Reveals Real Reason Tokenized Gold Has Not Taken Off – Crypto News"},"content":{"rendered":"

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Changpeng Zhao (CZ), founder and former CEO of Binance, has commented on recent news relating to gold proponent Peter Schiff. Schiff announced plans for a tokenized gold product, but CZ does not buy the idea.<\/p>\n

CZ reacts to Peter Schiff’s gold plans<\/h2>\n

The tokenized gold product announcement by Schiff represents a notable pivot. For years, he has dismissed Bitcoin (BTC), even recently\u00a0forecasting an imminent price crash<\/u><\/a>.<\/p>\n

However, he is now embracing blockchain for gold tokenization to make it more accessible and transferable.<\/p>\n

This disclosure has prompted CZ to respond with a pointed critique. CZ did not attack gold itself; rather, he called out a hype mismatch.<\/p>\n

He emphasized that although tokenized gold sounds revolutionary, it is often just a digital claim on vaulted metal, reliant on a central custodian.\u00a0<\/p>\n

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Saying the obvious. Most people \u201cin crypto\u201d know this, most people \u201cnot in crypto\u201d may not understand yet. <\/p>\n

Tokenizing gold is NOT \u201con chain\u201d gold. <\/p>\n

It\u2019s tokenizing that you trust some third party will give you gold at some later date, even after their management changes, maybe\u2026 https:\/\/t.co\/KMYfz2dG04<\/a><\/p>\n

\u2014 CZ \ud83d\udd36 BNB (@cz_binance) October 23, 2025<\/a><\/p><\/blockquote><\/div>\n

Individuals would not hold the gold “on-chain.” Instead, it is akin to a bank promising to return deposits. The challenge is that if the issuer goes bankrupt, gets hacked or changes hands, then the guarantees fail.<\/p>\n

Also, while physical gold endures, promises do not always. CZ raised questions about whether the third party will deliver on their promises years later, amid wars and economic chaos.<\/p>\n

He therefore dubbed the proposed product a “trust me bro” token. CZ added that this explains why no tokenized gold has taken off.<\/p>\n

This is a debate on the promise of blockchain. While Schiff is selling convenience with a gold twist, CZ is reminding everyone that true innovation does not outsource trust.<\/p>\n

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Peter Schiff faces more criticism<\/h2>\n

Meanwhile, Schiff faces criticism within the cryptocurrency market after gold prices plunged to record lows on Wednesday, Oct. 22, 2025.<\/p>\n

As revealed in a U.Today report, veteran crypto trader Peter Brant\u00a0took a playful jab at Schiff<\/u><\/a>. Brandt shared a historical gold chart suggesting that the precious metal has put its investors through a tough investment journey.<\/p>\n

According to the data, gold has continued to record deep and long-lasting consolidations. This is despite recording an average annual return of 3.6% over the past 45 years.<\/p>\n

Surprisingly, Schiff predicted earlier this month that\u00a0gold could hit $6,000 by Christmas<\/u><\/a>, outshining Bitcoin and the S&P 500.<\/p>\n

In contrast to this prediction, gold experienced a downtrend to below $4,100 on Wednesday, which has fueled recent criticism. Bitcoin, on the other hand, is still facing volatility but also showing signs of recovery.<\/p>\n

Over the past 24 hours, the BTC price surged slightly by 1.17% to $109,629.<\/p>\n<\/p><\/div>\n