E-commerce giant Mercado Libre (MELI) is taking its local cryptocurrency, Mercado Coin, offline almost four years after introducing it to boost customer engagement across its platform.
The e-commerce giant announced the decision through a notification and an email from Mercado Pago, its digital wallet, which will handle the removal. Starting April 17, users will not be able to buy, sell, or earn cashback on 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 their purchases on the platform.
Participating products offered token incentives that could be used toward future purchases or cashed out. The token, built on top of Ethereum’s ERC-20 standard, could be accessed through the Mercado Pago app and operated in partnership with crypto exchange Ripio.
Now, users who own Mercado Coin have some options. They can sell their tokens through the app, spend them as purchase credits on Mercado Libre, or wait for an automatic conversion to their local fiat currency, which will be deposited into their accounts.
While the company did not explain the decision in its customer notice, the departure comes as large technology companies reconsider their approach to branded digital assets.
Mercado Libre continues to support crypto features such as stablecoin transfers and token trading through Mercado Pago, and holds over $38 million in bitcoins. in its balance sheet. The company also has its own dollar-backed stablecoin.
