Latin American giant Mercado Libre shuts down Mercado Coin, terminating its proprietary crypto incentive system

According to Odaily, Latin American e-commerce giant Mercado Libre has announced the shutdown of its proprietary cryptocurrency token, Mercado Coin, ending a user incentive experiment that lasted nearly four years.

Starting April 17, users will no longer be able to purchase, sell, or earn Mercado Coin through cashback, officially terminating the token's core functionality within the platform. However, users can still choose to sell their held tokens, use them for shopping discounts, 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 feasibility and long-term value of their proprietary crypto assets (branded tokens). Nonetheless, Mercado Libre continues to maintain other crypto-related businesses, including stablecoin transfers, token trading features, 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.