Peter Schiff to Launch Tokenized Gold Product Amid CZ’s Criticism

Peter Schiff, known for his criticism of Bitcoin, is planning to launch a tokenized gold product. This will allow users to buy gold via an app, with ownership transferable and redeemable for physical gold.

Criticism from Binance's Changpeng Zhao

Changpeng Zhao (CZ) cautions that tokenized gold does not represent on-chain ownership of physical gold.
Tokenized assets depend on trust in a third party for future delivery, introducing counterparty risk.
CZ describes these as "trust me bro" tokens due to reliance on third-party assurances.

CZ attributes the lack of widespread adoption of gold-backed tokens to this inherent trust issue.

Market Insights

Peter Schiff questions the reliability of tokenized gold compared to traditional storage, likening it to stablecoins.
He highlights the historical trust in companies like Brinks for gold storage.

Gold and Bitcoin Market Dynamics

Gold recently corrected over 6.5% after reaching all-time highs above $4,350.
Schiff warns that Bitcoin could face significant downturns if gold's volatility is an indicator.
There's potential for investors to exit both gold and Bitcoin amidst such corrections.