Stablecoins, also known as stablecoins, are sending shockwaves through cryptocurrency markets. They have wiped out billions of their value and caused liquid cryptos like Bitcoin to crash, leading to people losing their savings.

Two of the main stablecoins in the crypto project Terra are now in freefall. Some have compared the incident to the collapse of Lehman Brothers, which precipitated 2008's financial crisis.

Stablecoins are claimed to provide a safe haven in a volatile crypto market. They can be linked to fiat currencies and maintain a 1-to-1 exchange rate with the US dollars. Recent events have shown that they can be just as volatile than other cryptocurrencies.

The stablecoin TerraUSD (or UST) crashed almost entirely at one point Thursday. It lost its $1 peg, EUR0.96, to the dollar, and tanked to a low of $0.26.

Terra was ranked as one of the top 10 most valuable cryptocurrency and reached an all-time high of almost $120 (EUR115.28 last month).

TerraUSD's sister token Luna, which fell more than 97% on Wednesday and dropped below $0.22, was also affected. Luna had fallen to $0.22 by Friday