Most of the crypto heads on Twitter actually seem to believe that it is properly backed. But you know, you're judging the opinion of people who invest in cartoon apes.
I don't think anyone genuinely believes this. But as long as everyone knows the game, but the peg holds and their bags are pumped, then nobody cares.
Just had a look on r/crytpocurrency and they all seem to realise it's BS and a huge risk to the market.