Mercado Libre terminates Mercado Coin, concluding its cryptocurrency initiative focused on customer loyalty.

Beginning April 17, users will lose the ability to purchase, sell, or earn cashback in Mercado Coin, but they can still sell, utilize, or convert the token into local currency.

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Key points:

• The e-commerce leader Mercado Libre is discontinuing its in-house cryptocurrency, Mercado Coin, almost four years after its launch aimed at enhancing customer interaction.
• Effective April 17, users will be unable to buy, sell, or earn cashback in Mercado Coin, although they can sell their tokens, use them as purchase credits, or convert them into local currency.
• This move aligns with a larger trend among major tech companies reassessing their strategies regarding branded digital currencies, while Mercado Libre remains committed to supporting other cryptocurrency functionalities like stablecoin transfers and maintains over $38 million in bitcoin on its balance sheet.

The e-commerce leader Mercado Libre (MELI) is terminating its proprietary cryptocurrency, Mercado Coin, nearly four years after its introduction to enhance customer engagement on its platform.

The company announced the decision via a notification and email from Mercado Pago, its digital wallet, which will manage the transition. Starting April 17, users will no longer be able to purchase, sell, or earn cashback in Mercado Coin, effectively concluding its functionality within the ecosystem.

Initially launched in August 2022 in Brazil before expanding to additional markets, Mercado Coin was designed as a reward system for users making purchases on the platform.

Products participating in the program provided token incentives that could be redeemed for future purchases or cashed out. The token, based on Ethereum’s ERC-20 standard, was accessible through the Mercado Pago app and collaborated with the crypto exchange Ripio.

Currently, users in possession of Mercado Coin have several choices. They can sell their tokens through the app, utilize them as purchase credits on Mercado Libre, or wait for an automatic conversion into their local fiat currency, which will be deposited in their accounts.

While the company did not elaborate on the reasoning behind the decision in its customer communication, this exit is part of a broader reassessment by major tech companies regarding their branded digital assets.

Mercado Libre continues to offer cryptocurrency features, including stablecoin transfers and token trading via Mercado Pago, and holds more than $38 million in bitcoin BTC$66,528.48 on its balance sheet. The firm also has its own dollar-pegged stablecoin.