Crypto-currency markets are being rocked after a popular token lost 99% of its value, dragging down a so-called "stablecoin" with it.
The BBC reports today that Terra Luna token fell from a high of $118 (£96), last month, to $0.09 on Thursday.
The collapse had a knock-on effect on a linked token, TerraUSD, which is normally stable.
And spooked investors are now pulling out of major crypto-currencies, sending markets plummeting.
The companies behind stablecoins try to ensure they remain in parity with assets such as the US dollar - with one token equalling $1, for example.
But on Thursday TerraUSD fell to $0.4 according to the trading website Coin Market Cap.
Tether, the most popular stablecoin, also fell off its US dollar peg - to an all-time low of $0.95.
And the combined market value of all crypto-currencies is now reportedly $1.12trillion, about a third of its November value, with more than 35% of that loss coming this week.
One Bitcoin is now worth about $27,000, its lowest value since December 2020 and down from a high of nearly $70,000 late last year.
Ethereum, the second largest coin by value, has lost 20% of its value in 24 hours.
FTSE 100
The UK's top share index, the FTSE 100, was up 58 points at 7,291 shortly after trading opened this morning, following yesterday's 114-point drop.
Brent crude futures were up 1.77% at $109.33 a barrel.
Companies reporting today
- Half-year results: Sage Group
- First-quarter results: Deutsche Telekom
- Trading statement: Contour Global