Binance’s CZ Warns About the Risks of Tokenized Gold: Not True Decentralization

Changpeng Zhao, founder of Binance, has warned investors against confusing tokenized gold with actual on-chain assets. He explains that these tokens represent ownership of gold held by custodians and don’t truly embody decentralized verification like Bitcoin. Zhao highlights the crucial difference in how they operate: while tokenized gold relies on external trust for redemption, Bitcoin leverages a secure blockchain system for its validation.