Mercado Libre, the e-commerce giant, is discontinuing its proprietary cryptocurrency, Mercado Coin, nearly four years after launching it as a customer rewards tool. The token was originally introduced to incentivize engagement by offering cashback to shoppers on the platform. The decision marks a significant reversal for a company that once positioned the coin as a key part of its digital ecosystem.
Beginning April 17, users will no longer be able to buy, sell, or earn cashback through Mercado Coin. However, the company is providing a transition period during which holders can spend their tokens as purchase credits, sell them, or have them converted into local currency. The wind-down gives existing users several options to manage their remaining balances before the asset is fully retired.
The move reflects a wider pattern among large technology companies that have chosen to step back from branded digital currencies. Several major firms have reconsidered similar initiatives in recent years as the practical challenges of maintaining proprietary tokens have become more apparent. Mercado Libre’s decision appears consistent with this broader industry reassessment.
Despite retiring Mercado Coin, the company has not abandoned cryptocurrency entirely. Mercado Libre continues to support other crypto-related features on its platform, including stablecoin transfers. The company also holds more than $38 million in bitcoin on its balance sheet, signaling an ongoing interest in established digital assets even as it exits its own token.
The shutdown underscores the difficulty of sustaining branded cryptocurrencies in a competitive and rapidly evolving digital asset landscape. While Mercado Coin served as a loyalty mechanism, its discontinuation suggests the model did not deliver sufficient long-term value to justify continued operation. Mercado Libre has not publicly detailed the specific reasons behind the timing of the closure.
Originally reported by CoinDesk.
