Turmoil and panic in crypto market as ‘stablecoin’ slump prompts wider collapse

The near-total crash of terra has fuelled real panic that the crypto sector may face existential problems

Shockwaves swept through cryptocurrency markets on Thursday as tether, the largest stablecoin" and a foundational part of the digital asset ecosystem, broke its peg to the dollar in the latest blow to the struggling sector.

Bitcoin and ethereum, the two biggest cryptocurrencies, shed 5% and 12% respectively, extending losses that have seen both fall more than 20% over the past week. Losses have been even bigger for the smaller players, with dogecoin falling 10% on Thursday and 35% over the week.