E-commerce giant Mercado Libre (MELI) is discontinuing its homegrown cryptocurrency, Mercado Coin, almost four years after introducing it to boost customer engagement on its platform.
The e-commerce giant announced its decision through a notification and email from Mercado Pago, its digital wallet, which will manage the phase-out. Starting April 17, users will no longer be able to buy, sell, or earn cashback in Mercado Coin, effectively ending its usefulness within the ecosystem.
Launched in August 2022 in Brazil before expanding to other markets, Mercado Coin was introduced 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 through 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 shopping credits on Mercado Libre, or wait for automatic conversion to their local fiat currency, which will be deposited into their accounts.
Although the company did not explain its decision in its customer advisory, the withdrawal comes as major technology companies rethink their approach to branded digital assets.
Mercado Libre continues to support crypto features such as stablecoin transfers and token swapping through Mercado Pago, and holds over $38 million worth of bitcoin. on its balance sheet. The company also has its own dollar-backed stablecoin.
