Latin American giant Mercado Libre shuts down Mercado Coin, ending its proprietary crypto incentive system

Odaily Planet Daily News: Latin American e-commerce giant Mercado Libre announced that it will shut down its own crypto token, Mercado Coin, ending a user incentive experiment that has lasted nearly four years.

Starting April 17, users will no longer be able to buy, sell, or obtain Mercado Coin through cash-back rewards. The token’s core functions within the platform have officially been terminated. However, users can still choose to sell the tokens they hold, use them for shopping as a payment offset, or wait for the system to automatically convert them into local fiat currency.

Mercado Coin was launched in Brazil in 2022, based on the Ethereum ERC-20 standard. It was initially used to reward platform spending behavior and was managed through the Mercado Pago wallet, in cooperation with the exchange Ripio to support circulation.

This shutdown reflects that large tech companies are re-evaluating the viability and long-term value of their own crypto assets (brand tokens). Even so, Mercado Libre still retains other crypto-related businesses, including stablecoin transfers and token trading functions, and it holds more than $38 million worth of Bitcoin on its balance sheet.

Industry insiders believe this move marks a cooling off of the “platform token” model, while more general stablecoins and infrastructure-type products are becoming the mainstream direction.