Mercado Libre (MELI) Shuts Down Mercado Coin Four Years After Debut

Mercado Libre is ending support for its in-house cryptocurrency, Mercado Coin, marking a shift in its digital asset strategy. The company informed Mercado Pago users on March 31 that the token will lose all functionality by April 17.

As a result, users will no longer be able to buy, sell, or receive cashback in Mercado Coin after that date. The move effectively ends a project that aimed to connect e-commerce activity with blockchain-based rewards.

How Mercado Coin Worked

Mercado Coin launched in August 2022 in partnership with Brazilian exchange Ripio during a period of strong retail interest in crypto. The token started at a price of $0.10 and targeted everyday users within the Mercado Libre ecosystem.

It allowed shoppers to earn tokens through purchases and reuse them for future transactions or convert them into cash within the app. This approach aimed to introduce crypto simply without requiring users to manage external wallets.

However, despite early traction, the token remained limited to a closed system controlled by the company. It did not gain broader utility across exchanges or decentralized finance platforms, which restricted its long-term adoption.

Mercado Libre has not disclosed detailed usage data, but the decision suggests that activity did not meet expectations. The company appears to have concluded that maintaining the token no longer justified the cost and complexity involved.

Managing Holdings Before the Shutdown

Users now have a short window to manage their holdings before the shutdown takes effect. They can sell their tokens, spend them on purchases, or allow the system to automatically convert their balance into local currency.

Any remaining Mercado Coin after the deadline will be exchanged into fiat, such as Brazilian reais or equivalent currencies. The converted funds will be credited directly to user accounts within Mercado Pago.

The decision reflects a broader trend among technology firms that experimented with branded digital tokens but later scaled back, often due to regulatory uncertainty and limited network effects.

Mercado Libre is not fully stepping away from crypto, as it continues to support trading of established tokens on its platform. The company also holds over $38 million worth of bitcoin on its balance sheet, showing ongoing exposure to digital assets.

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