TerraUSD, the world's fourth largest stablecoin, lost 33% of its value on Tuesday breaking its 1:1 peg to the US dollar and falling to $0.67. This broke the stablecoin's peg and further contributed to bitcoin falling below $30,000 for the first time in a long time. Unlike other stablecoins that maintain their peg through reserves of fiat currencies, TerraUSD uses an algorithm and its sister token Luna to maintain its dollar peg. The stablecoin's fall frightened cryptocurrency investors and added volatility to markets.