TLuna, the sibling cryptocurrency of the contentious stablecoin TerraUSD, has plummeted to less than $0.

TerraUSD, or UST, has been thrust into the limelight in recent days when the so-called stablecoin, which is intended to be tied one-to-one with the US dollar, plummeted below $1.

UST is a code-based algorithmic stablecoin that uses a sophisticated mechanism of minting and burning to keep its price at roughly $1. To keep the dollar peg, a UST token is generated by destroying some of the linked cryptocurrency luna.

Its peg has been lost, and investors are scrambling to sell the luna token that goes with it. According to Coin Metrics data, the price of Luna has dropped from approximately $85 a week ago to around 4 cents on Thursday, making the cryptocurrency essentially useless.

The Terra network, the blockchain connected with the luna token, is “experiencing slowness and congestion,” according to Binance, one of the world’s major cryptocurrency exchanges. As a result, Binance’s exchange is seeing a “large volume of pending Terra network withdrawal transactions,” indicating that investors are racing to sell luna.

The TerraUSD dispute has spread throughout the cryptocurrency world. Because the Luna Foundation Guard is holding bitcoin as a reserve, this is the case. The danger now is that the organisation will be forced to liquidate its bitcoin assets in order to maintain the peg.

Bitcoin has plummeted more than 29% in the last seven days, dropping below $26,000 at one point on Thursday to trade at its lowest level since late December 2020.

On Thursday, Tether, the world’s largest stablecoin, slipped below its $1 peg amid a broader panic in cryptocurrency markets.