Mercado Libre Halts Mercado Coin and Cashback Rewards

TLDR

• Mercado Libre will discontinue Mercado Coin and end all related services on April 17.
• Users will no longer buy, sell, or earn cashback in Mercado Coin after the shutdown date.
• Mercado Pago will manage the phase-out process through in-app notifications and email updates.
• Users can sell their tokens, spend them on purchases, or wait for automatic conversion into local currency.
• Mercado Libre built Mercado Coin on Ethereum’s ERC-20 standard and launched it in Brazil in August 2022.

Mercado Libre will discontinue Mercado Coin and halt all related functions starting April 17. The company confirmed the decision through Mercado Pago notifications and direct emails to users. As a result, customers will no longer buy, sell, or earn cashback in the token across the platform.

Mercado Libre and Mercado Coin: Program Winds Down

Mercado Libre launched Mercado Coin in August 2022 in Brazil to reward purchases with token incentives. The company later expanded the program to other regional markets as adoption grew. However, Mercado Pago now informed users that it will end buying, selling, and cashback features on April 17. The notice stated, “Starting April 17, you will not be able to operate with Mercado Coin.”

The company built the token on Ethereum’s ERC-20 standard and integrated it within the Mercado Pago app. Users earned tokens when they purchased selected products on the marketplace. They then used those tokens for future purchases or converted them into local currency. Mercado Libre partnered with crypto exchange Ripio to support trading functions within the app.

Users Receive Conversion and Withdrawal Options

Mercado Pago outlined clear steps for users who still hold Mercado Coin balances. Users can sell their tokens directly through the app before the shutdown date. They can also spend remaining balances as purchase credits on Mercado Libre’s marketplace. If users take no action, Mercado Pago will automatically convert holdings into local fiat currency.

The automatic conversion will deposit funds directly into each user’s Mercado Pago account. However, the company did not disclose the exact conversion rate in the notice. Mercado Libre did not provide a detailed explanation for ending the program. The communication focused only on operational changes and user instructions.

Mercado Libre continues to maintain other cryptocurrency services through Mercado Pago. Users can still access stablecoin transfers and token trading features within the wallet. The company also holds more than $38 million in bitcoin on its balance sheet. Bitcoin traded at $67,759.18 at the time of reporting.

Mercado Libre also issues a dollar-backed stablecoin for transactions within its ecosystem. The company has not announced any changes to that product. Mercado Pago remains the central hub for all crypto-related services offered by Mercado Libre. The phase-out of Mercado Coin will take effect on April 17, according to the official notice.

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