I think Fiat base stable coin seems to be better then other kind of stable coin and algorithmic stable coin is the most risky one. As an example we can say about USTC.
Fiat base stablecoin seems to be safe but still there have risk and for the reason we all should diversify our asset in various kind of stable coin like some in USDT,Some in USDC,Some in DAI and others.
You make a valid point about the relative safety of fiat-based stablecoins compared to other types of stablecoins like algorithmic stablecoins. While fiat-based stablecoins are backed by a fiat currency, algorithmic stablecoins are not. This makes algorithmic stablecoins more volatile and unpredictable, which can increase the risk associated with holding them.