E-commerce giant Mercado Libre (MELI) is pulling the plug on its homegrown cryptocurrency, Mercado Coin, nearly four years after introducing it to boost customer engagement across its platform.
The e-commerce giant announced the decision through a notification and email from Mercado Pago, its digital wallet, which will handle the phase-out. Starting April 17, users won’t be able to buy, sell or earn cashback in Mercado Coin, effectively ending its utility inside the ecosystem.
Launched in August 2022 in Brazil before expanding to other markets, Mercado Coin was pitched as a way to reward users for purchases on the platform.
Participating products offered token incentives that could be used for future purchases or cashed out. The token, built on Ethereum’s ERC-20 standard, was accessible via the Mercado Pago app and operated in partnership with crypto exchange Ripio.
Now, users holding Mercado Coin have a few options. They can sell their tokens through the app, spend them as purchase credits on Mercado Libre or wait for an automatic conversion into their local fiat currency, which will be deposited into their accounts.
Whilel the company didn’t explain the decision in its customer notice, the exit comes as large tech firms rethink their approach to branded digital assets.
Mercado Libre continues to support crypto features such as stablecoin transfers and token trading via Mercado Pago, and holds more than $38 million worth of bitcoin on its balance sheet. The company also has its own dollar-backed stablecoin.
