E-commerce powerhouse Mercado Libre is discontinuing its proprietary cryptocurrency, Mercado Coin. This move effectively terminates the loyalty-driven digital asset experiment that began nearly four years ago to incentivize customer engagement on its platform.

End of the Mercado Coin Program

Key Dates and User Actions

Starting April 17, users will face significant changes regarding their holdings. The ability to buy, sell, or earn cashback using Mercado Coin will cease on this date. However, users retain options for their existing tokens.

Holders can choose to sell their Mercado Coins directly through the application. Alternatively, they may spend the tokens as purchase credits on the Mercado Libre platform. A final option allows for an automatic conversion into the user's local fiat currency, deposited directly into their accounts.

Program Background

Mercado Coin was initially launched in August 2022, debuting in Brazil before expanding its reach to other markets. The token was designed to reward customers for purchases made across the ecosystem.

The incentive structure offered token rewards on participating products, which users could then apply toward future transactions or redeem. The token operated on Ethereum’s ERC-20 standard and was accessible via the Mercado Pago digital wallet application, in partnership with the crypto exchange Ripio.

Broader Industry Context

Mercado Libre communicated this phase-out via notifications sent through Mercado Pago, its digital wallet service. While the company did not provide an explicit reason for the shutdown in its customer notices, the decision aligns with a wider trend.

This trend involves major technology firms reassessing their involvement with branded digital assets. Despite ending Mercado Coin, Mercado Libre maintains its commitment to other cryptocurrency functionalities.

Mercado Libre's Remaining Crypto Presence

The company continues to support features such as stablecoin transfers within its ecosystem. Furthermore, Mercado Libre still holds a substantial investment, exceeding $38 million, in Bitcoin on its corporate balance sheet.