Mercado Libre Discontinues Mercado Coin Rewards Program: Sources
Latin American e-commerce powerhouse Mercado Libre is discontinuing its rewards-oriented Mercado Coin cryptocurrency introduced in 2022, shifting strategic focus toward its Meli Dolar stablecoin initiative.
E-commerce giant Mercado Libre, operating throughout Latin America, is said to be discontinuing operations for Mercado Coin, the loyalty-focused digital currency it introduced in August 2022, which was designed to provide cashback rewards and additional benefits to its user base.
Based on a Tuesday report from Reuters, customers have until April 17 to either liquidate or utilize their remaining loyalty coin holdings via the Mercado Pago application. In cases where users take no action, their remaining balances will undergo automatic conversion into Brazilian reals.
Cointelegraph reached out to Mercado Libre for comment.
The primary marketplace for Mercado Coin has been Brazil, where the token allowed customers to accumulate rewards in the form of cashback when purchasing items through Mercado Libre, which is widely regarded as Latin America's equivalent to Amazon.
While Mercado Coin is being discontinued, crypto-based rewards will continue to be available for Mercado Libre customers, as the online retail giant maintains its Meli Dolar (MUSD) offering, a stablecoin pegged to the US dollar that debuted in 2024.
Information from Mercado Libre's most recent attestation report dated Feb. 28 reveals that MUSD balances are supported by approximately $75 million in underlying assets.
Nubank's Nucoin collapsed in 2024
Creating proprietary utility tokens in the Latin American market has demonstrated significant challenges.
Brazil's premier financial institution, Nubank, introduced the Polygon-blockchain-based Nucoin in the final months of 2022 and distributed tokens via airdrop to a substantial portion of its customer base exceeding 100 million users not long after launch.
Nevertheless, the token experienced a devastating 97% value decline by September 2024, compelling Nubank to halt all trading activities for the digital asset.
Beginning in July, Nubank initiated a comprehensive overhaul of its Nucoin loyalty initiative, removing its market-driven characteristics and transforming it into a rewards system centered on user engagement, exclusive benefits and features accessible within the app.
Mercado Libre has held strong on its Bitcoin
In the meantime, Mercado Libre maintains its position as a Bitcoin (BTC) holder for treasury purposes, with 570.4 Bitcoin valued at $38.85 million recorded on its financial statements, according to data from BitcoinTreasuries.NET.
Among corporate entities, Mercado Libre was an early adopter of Bitcoin as an investment strategy, executing its initial acquisition in 2021.
The e-commerce company has refrained from selling its holdings and currently enjoys approximately 77% gains on its Bitcoin position, having acquired the digital currency at an average entry price of $38,569.