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 statement and email from Mercado Pago, its digital wallet, which will handle the phase-out. As of April 17th, users will not be able to buy, sell or earn cashback in Mercado Coin, effectively ending its usefulness in the ecosystem.
Launched in August 2022 in Brazil before expanding to other markets, Mercado Coin was presented as a way to reward users for purchases on the platform.
Participating products offered token incentives that could be used toward 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, use them as purchase credits at Mercado Libre, or wait for an automatic conversion to their local fiat currency, which will be deposited into their accounts.
Although the company did not explain the decision in its client announcement, the exit comes as major tech companies 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 has more than $38 million in bitcoin on its balance sheet. The company also has its own dollar-backed stablecoin.
