CZ: Tokenizing Gold is Not the Same as On-Chain Gold

BlockBeats News, October 23rd, CZ posted on social media, saying, "It's a pretty obvious point. Most people 'in the crypto space' understand this, but most people 'not in the crypto space' may not have realized it yet."

Tokenizing gold is not 'on-chain gold.' It's simply tokenizing the idea of 'you trust some third party to give you gold at some point in the future' — even if their management has since changed, perhaps decades have passed, or it's even wartime. This is essentially a 'trust me bro' token. This is why no 'gold coin' has really taken off."

Prior to this, cryptocurrency critic Peter Schiff revealed that he will be launching a gold tokenization product. "You can buy gold through an app on your phone, and this gold will be stored in a vault. Then, you can easily transfer ownership of the gold to people you know, or redeem it for physical gold."