Mercado Libre Shuts Down Its Crypto Coin in Sudden Exit

TL;DR

• Mercado Libre is ending Mercado Coin, a four-year loyalty token that failed to gain user adoption.
• The company is now focusing on its dollar-pegged stablecoin, MeliDolar, which provides stable value and practical use cases for everyday transactions.
• Similar reward-based tokens, such as Nubank’s Nucoin, also failed to maintain traction, signaling a broader trend in Latin America’s fintech and crypto ecosystems.
  

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Mercado Libre is discontinuing Mercado Coin, its crypto-based rewards token, marking a significant strategic shift for one of Latin America’s largest e-commerce and fintech platforms. The company announced that the token will cease operations on April 17, offering users options to sell, spend, or convert their holdings to local currency through the Mercado Pago app.

Launched in 2022 on Ethereum as an ERC-20 token, Mercado Coin allowed users to earn rewards for purchases and spend them on the platform. Despite initial interest, adoption remained limited and token volatility reduced its appeal, preventing it from becoming a practical tool for consumers.

Mercado Libre Crypto Strategy Shifts Toward Stability

Instead of exiting crypto entirely, Mercado Libre is pivoting to stablecoins. In 2024, the company launched MeliDolar, a U.S. dollar-pegged stablecoin backed by Treasuries and dollar deposits. Unlike Mercado Coin, MeliDolar maintains a fixed value, offering a more reliable medium for transactions and savings.

MeliDolar is integrated into cashback programs, letting users earn and spend digital dollars seamlessly within Mercado Libre’s ecosystem. For consumers in countries with fluctuating local currencies, the stablecoin provides both a hedge and a convenient payment option.

Reward Tokens Lose Ground Across Fintech Platforms

Mercado Libre’s decision reflects a wider pattern in Latin America. Nubank, Brazil’s leading digital bank, launched Nucoin on Polygon in 2023 as a loyalty token. Despite initial scale, Nucoin lost most of its value and was fully discontinued by December 2024, affecting millions of users.

These experiences show that reward tokens tied to market prices often fail to sustain user trust. Volatility turns them into speculative assets rather than functional rewards, limiting adoption and practical utility.

Mercado Libre continues to hold more than $38 million in Bitcoin and supports trading and stablecoin transfers through Mercado Pago. While the infrastructure remains, the focus has shifted from experimental tokens to digital assets that provide consistent value and everyday usability.

The closure of Mercado Coin signals a maturation in Latin America’s crypto market, where companies are prioritizing practical stablecoins over speculative reward tokens to better serve consumers in volatile financial environments.