Binance founder and former CEO Changpeng Zhao (CZ) caused a stir in the crypto community with his comments about prominent gold investor Peter Schiff's new tokenized gold products.
CZ criticizes Peter Schiff's tokenized gold project 'Trust-me-bro Token'
Schiff's new digital asset will allow investors to trade gold-backed tokens on the blockchain. However, CZ stressed that this approach is not “real gold on chain.”
“Tokenized gold is not gold on chain. It is simply based on asking a third party to trust you to repay the gold in the future. In other words, it is a 'trust me bro' token,” CZ said in a post on the X platform.
The famous entrepreneur said that “gold-backed digital assets” have historically failed to achieve sustained success, citing centralized trust issues as the main reason. According to CZ, tokenized gold products contradict the decentralization principles offered by blockchain, as they force users to rely on intermediaries.
Peter Schiff, known for his past criticism of Bitcoin and the crypto market, has argued that gold-backed digital products could provide a “true value base” for cryptocurrencies. However, CZ’s comments brought decentralization and trust back to the forefront of the crypto community.
*This is not investment advice.
