Mercado Libre, one of Latin America’s leading e-commerce platforms, has decided to end the activities of its own cryptocurrency, Mercado Coin, which it launched about four years ago. The company shared that this digital asset, which it launched to increase users and interaction within the platform, will not be allowed to be used for buying, selling and shopping refunds as of April 17. Users will follow the process through Mercado Libre’s digital wallet application, Mercado Pago.
Mercado Coin’s journey and features
Mercado Coin was first launched in Brazil in August 2022. Then, following successful results, the company carried this reward system application to other countries. The main purpose of the token was to encourage users to shop and offer a loyalty program. Users earned Mercado Coins for purchases made through various products on the platform and either used this digital asset as a credit for their subsequent expenditures or converted it into cash.
Developed in the ERC-20 standard, the token operated on the Ethereum infrastructure. Users were able to carry out Mercado Coin transactions thanks to the Mercado Pago application. The company also carried out various collaborations with the crypto exchange Ripio within the scope of the project.
Alternatives offered to users and the company’s current crypto strategy
With the new decision, users in the Mercado Coin portfolio have several different options. Those who wish can sell their tokens immediately through the application or use the remaining balance as shopping credit. In addition, token balances, which will be automatically converted to local currency at market value after a certain period of time, will be transferred directly to users’ accounts.
Detailed reasons were not included in the company’s announcement of this decision. However, it is known that large technology companies have recently approached their own brand digital assets more cautiously.
Although Mercado Libre has ended its own digital presence, it has not completely abandoned cryptocurrency transactions on the platform. Users can still transfer stablecoins and transact other tokens through the Mercado Pago digital wallet. The company also continues to hold Bitcoin on its balance sheet and operates its own stablecoin pegged to the US dollar.
