A popular token has lost 99 percent of its value, dragging down a so-called “stablecoin” with it.
On Thursday, the Terra Luna token fell from a high of $118 (£96) last month to $0.09.
The collapse had an impact on TerraUSD, a linked token that is normally stable.
Worried investors are now exiting major crypto-currencies, sending markets plummeting.
The companies behind stablecoins work hard to keep them in parity with assets like the US dollar, with one token equaling $1, for example.
However, according to the trading website Coin Market Cap, TerraUSD fell to $0.4 on Thursday.
Tether, the most popular stablecoin, also fell off its US dollar peg – to an all-time low of $0.95.
On Twitter and Google Search, the term “cryptocrash” has been trending.
And the combined market value of all crypto-currencies is now reportedly $1.12 trillion, roughly a third of what it was in November, with more than 35% of that loss occurring this week.
One Bitcoin is currently worth around $27,000, its lowest value since December 2020 and a drop from a high of nearly $70,000 late last year.
On Twitter and Google Search, the term “cryptocrash” has been trending.
And the combined market value of all crypto-currencies is now reportedly $1.12 trillion, roughly a third of what it was in November, with more than 35% of that loss occurring this week.
One Bitcoin is currently worth around $27,000, its lowest value since December 2020 and a drop from a high of nearly $70,000 late last year.