Mercado Libre's Four-Year Crypto Love Affair Ends: Mercado Coin Gets the Ax

Another big tech crypto experiment bites the dust. Mercado Libre is officially shutting down its homegrown cryptocurrency, Mercado Coin, nearly four years after launching it to boost customer engagement across its platform. Spoiler: engagement wasn't enough to save it.

The e-commerce giant broke the news via notification and email from Mercado Pago, its digital wallet, which will handle the phase-out. Starting April 17, users won't be able to buy, sell, or earn cashback in Mercado Coin—effectively ending its utility inside the ecosystem. Mark your calendars, degens. April 17 is the death date.

Mercado Coin launched in August 2022 in Brazil before expanding to other markets. The token was pitched as a way to reward users for purchases on the platform, with participating products offering token incentives that could be used for future purchases or cashed out. The ERC-20 token was accessible via the Mercado Pago app and operated in partnership with crypto exchange Ripio. It was basically a loyalty points program with blockchain theater—and apparently, the theater wasn't worth the gas.

For those still holding Mercado Coin, there are a few options: sell through the app, spend as purchase credits on Mercado Libre, or wait for automatic conversion into local fiat currency deposited into accounts. HODLers get converted whether they like it or not. Fiat absorption: the ultimate exit strategy.

The company didn't explain the decision in its customer notice, but the exit comes as large tech firms rethink their approach to branded digital assets. Meanwhile, Mercado Libre continues to support crypto features like stablecoin transfers and token trading via Mercado Pago and holds over $38 million in bitcoin on its balance sheet. The company also has its own dollar-backed stablecoin. So they dumped the shitcoin but kept the BTC and stablecoins. Smart.

So long, Mercado Coin. You had a good run.