Gold investor and economist Peter Schiffannounced a new tokenized gold product that digitally represents physical gold. In his statement, Schiff said that users can directly access the mobile application. gold He stated that user assets will be kept in secure safes and ownership rights can be easily transferred to anyone who wishes. Additionally, investors can exchange their tokens upon request. physical gold He added that he could also take it back. Changpeng Zhao, founder and former CEO of Binance, X He targeted and criticized Schiff’s project on his account.
Trust-Based Token Criticism from Zhao
Changpeng Zhaogave a harsh response to Schiff’s new initiative on social media from his account X. Zhao stated that tokenized gold is an asset that is not actually in the Blockchain, and that users are essentially investing in a third party that is trusted to deliver the gold in the future. “Tokenized gold is not in-blockchain gold,” said Zhao, emphasizing that such products only offer a “trust me, brother”, that is, a trust-based structure.
Zhao pointed out that this trust may disappear during periods of management changes, economic crises or war, and said, “Who can be sure that they will actually deliver the gold after years, even decades?” posed the question. The famous manager was similar in the past gold coin projectsHe stated that the failure of the company was due to the same trust problem.
The Old Debate Between Gold and Cryptocurrency World Reignited
Schiff’s tokenized gold project has revived the debate between traditional investors, who have long been known to be pro-physical assets, and the cryptocurrency world, which advocates decentralized finance. While Schiff defines Blockchain-based transfer of gold as the digital ownership model of the future, cryptocurrency Many people in the world argue that this approach is against decentralization.
Experts state that in order for Schiff’s project to be successful, regulatory transparency, physical collateral evidence and continuous auditing mechanisms must be clearly established, beyond investor confidence. Otherwise, as Zhao stated, gold tokens may turn into just a promise rather than an in-Blockchain value.
