The bigger issue with the off-chain backed coins is verifying assets. I think it's pretty well accepted now that Tether was just lying about their cash reserves

The bigger issue with the off-chain backed coins is verifying assets. I think it's pretty well accepted now that Tether was just lying about their cash reserves in the beginning and now don't even try to claim they're backed with cash but a dubious opaque mix of commercial debt, cash, and crypto.