The world’s largest crypto exchange has delisted so-called stablecoins Terra and Luna, as their ‘unpegging’ from the US dollar has led to a massive market freefall.

Stablecoins are meant to have a fixed value, usually pegged to the US dollar, in order to act as an anchor for the violate crypto market. The idea is that they are backed by real-world assets, to further shore them up.

Terra suffered a mass selloff as its value suddenly “unpegged” from the dollar, seeing the place plunge from US$1 to around 20c.

It’s sister token Luna, dropped from US$86 to around 6 cents in less than a week, a 99 per cent plummet, from a total market value of US$40 billion to roughly $500 million.

This has caused huge upheaval in the entire crypto market, and has been blamed for the sudden crash of bitcoin, also once deemed a safe, steady bet.

Prior to this week, LUNA was a top ten coin by market capitalisation, while Terra (UST) was the third largest stablecoin in the world, behind Tether, and USD Coin.

Tether, the world’s largest stablecoin, dropped under US$1 yesterday.