Mercado Libre Shuts Down Mercado Coin, Ending Loyalty Crypto Experiment

E-commerce giant Mercado Libre is discontinuing Mercado Coin, its homegrown cryptocurrency launched nearly four years ago to reward customer engagement. Beginning April 17, users will no longer be able to buy, sell, or earn cashback rewards in the token, marking the end of the company’s branded digital asset initiative.

Mercado Pago, Mercado Libre’s digital wallet service, announced the shutdown through customer notifications and emails. The phase-out represents a significant pivot for the Latin American e-commerce platform, which had positioned Mercado Coin as a central feature of its loyalty rewards ecosystem.

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Mercado Coin was introduced in August 2022 in Brazil before expanding to additional markets across the region. The token was built on the Ethereum blockchain using the ERC-20 standard and operated in partnership with crypto exchange Ripio. Users could earn the token through purchases on the Mercado Libre platform and redeem it for future transactions or cash out their holdings.

The cryptocurrency offered merchants and customers an alternative way to engage with the platform’s payment infrastructure. Participating products provided token incentives that could be accumulated and used flexibly within the ecosystem, demonstrating Mercado Libre’s initial commitment to integrating blockchain-based loyalty mechanisms.

Users currently holding Mercado Coin have several exit options following the April 17 deadline. Holders can sell their tokens directly through the Mercado Pago app, spend accumulated tokens as purchase credits on Mercado Libre’s platform, or wait for automatic conversion into local fiat currency, which will be deposited into their accounts.

While Mercado Libre did not publicly explain the rationale behind the shutdown decision, the move reflects a broader industry trend of major technology companies reassessing their approaches to branded digital assets. Several large tech firms have similarly wound down cryptocurrency initiatives in recent years as market conditions and regulatory environments have shifted.

Despite discontinuing Mercado Coin, Mercado Libre continues to maintain active cryptocurrency operations. The company supports stablecoin transfers through its platform and enables token trading via Mercado Pago, indicating that the firm is not entirely exiting the digital asset space.

Mercado Libre’s commitment to cryptocurrency extends beyond payment processing. The company holds over $38 million in bitcoin on its corporate balance sheet, demonstrating ongoing confidence in digital assets as a store of value. The firm has also developed its own dollar-backed stablecoin, indicating a strategic focus on stable value solutions for its user base.

The shutdown of Mercado Coin comes as traditional finance and e-commerce companies navigate evolving regulatory frameworks governing cryptocurrency and digital assets. Several jurisdictions have implemented stricter compliance requirements for companies issuing and managing branded tokens.

Mercado Libre’s decision to maintain other crypto features while eliminating Mercado Coin suggests a strategic recalibration rather than a complete departure from digital assets. The company appears to be consolidating its cryptocurrency offerings around payment infrastructure and stablecoin functionality.

The phase-out will impact millions of users across Mercado Libre’s platform, which operates across multiple countries in Latin America. The company had previously positioned Mercado Coin as central to its customer retention and engagement strategy, making the discontinuation a notable shift in its digital asset roadmap.

For users seeking to maximize their holdings, the April 17 deadline creates a final window to sell tokens, redeem them as purchase credits, or allow automatic conversion to local currency. Mercado Pago’s handling of the transition aims to ensure seamless account settlements for affected users.

The cryptocurrency market continues to evolve as major corporations evaluate their long-term digital asset strategies. Mercado Libre’s experience with Mercado Coin contributes to broader industry discussions about the viability and sustainability of corporate-branded tokens in competitive e-commerce environments.

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