Mercado Libre Shuts Down Mercado Coin Amid Shifting Crypto Strategy

Mercado Libre, Latin America's leading e-commerce platform, is discontinuing its proprietary cryptocurrency, Mercado Coin, roughly four years after its debut. The company announced the phase-out through official notifications sent via Mercado Pago, its widely used digital wallet.

Beginning April 17, users will no longer be able to buy, sell, or earn cashback rewards in Mercado Coin, effectively removing the token from the platform's entire ecosystem. The shutdown marks a significant pivot for a company that once positioned branded crypto as a tool for driving customer loyalty and repeat purchases.

Mercado Coin was first introduced in Brazil in August 2022 before rolling out to additional markets. It was built on Ethereum's ERC-20 blockchain standard and was accessible directly through the Mercado Pago app, operating in collaboration with crypto exchange Ripio. Users could earn tokens as cashback on eligible purchases and either redeem them for future transactions or convert them into cash.

Customers currently holding Mercado Coin have several options before the deadline. They may sell their tokens through the app, apply them as purchase credits on Mercado Libre's marketplace, or allow them to be automatically converted into their local currency and deposited into their accounts.

While Mercado Libre has not publicly explained the reasoning behind the decision, the move aligns with a broader industry trend of major tech companies stepping back from branded digital currencies. Many firms have struggled to sustain user engagement with proprietary tokens outside of well-established crypto ecosystems.

Despite retiring Mercado Coin, Mercado Libre remains active in the cryptocurrency space. The company continues to offer stablecoin transfers and token trading through Mercado Pago, maintains over $38 million in Bitcoin on its corporate balance sheet, and operates its own dollar-backed stablecoin, signaling a more strategic and focused approach to digital assets going forward.