Svmuu News Latin American e-commerce giant Mercado Libre has announced the shutdown of its proprietary crypto token, Mercado Coin, ending this nearly four-year-long user incentive experiment.
Starting April 17, users will no longer be able to purchase, sell, or earn Mercado Coin through cashback, marking the official termination of the token's core functions within the platform. However, users can still choose to sell their held tokens, use them for shopping deductions, 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, managed through the Mercado Pago wallet, and supported circulation in partnership with the exchange Ripio.
This shutdown reflects that large tech companies are reassessing the viability and long-term value of proprietary crypto assets (brand tokens). Nevertheless, Mercado Libre continues to maintain other crypto-related businesses, including stablecoin transfers, token trading functions, and holds over $38 million worth of Bitcoin on its balance sheet.
The industry believes this move signals a cooling of the "platform token" model, while more versatile stablecoins and infrastructure-type products are becoming the mainstream direction.