Mercado Libre to Retire Mercado Coin, Shifts to Stablecoin

• Mercado Libre is phasing out Mercado Coin, its native loyalty token launched in August 2022.
• Users have until April 17 to spend or sell their balances, after which they will be automatically converted to Brazilian reals.
• The company is pivoting its crypto strategy toward Meli Dolar (MUSD), a US-dollar stablecoin launched in 2024.

Termination of Mercado Coin

Mercado Libre, often referred to as the "Amazon of Latin America," has announced the discontinuation of Mercado Coin. The digital asset was originally introduced to provide customers in Brazil with cash-back rewards and incentives for purchases on the e-commerce platform. According to recent reports, the transition period requires users to take action via the Mercado Pago app. If balances are not utilized or sold by the April 17 deadline, the system will liquidate the tokens and credit the equivalent value in local currency.

Shift to Meli Dolar and Stablecoins

The decision to sunset Mercado Coin does not signify a withdrawal from the digital asset space. Instead, Mercado Libre is prioritizing Meli Dolar (MUSD), a stablecoin pegged to the US dollar. Introduced in 2024, MUSD is used for peer-to-peer payments and everyday transactions within the ecosystem. Members of the Meli+ subscription program can still earn cash-back rewards in the form of the stablecoin. An attestation report from February 28 revealed that MUSD is supported by $75 million in underlying assets.

Regional Challenges and Bitcoin Treasury

The move comes amid a difficult environment for proprietary utility tokens in Latin America. For instance, Nubank, the largest bank in Brazil, saw its Nucoin token lose 97% of its value by September 2024, leading to a suspension of trading and a major restructuring of its loyalty program.

Despite the change in its rewards program, Mercado Libre remains a significant corporate holder of Bitcoin (BTC). The company's treasury currently includes:

• 570.4 Bitcoin held on the balance sheet.
• A total value of approximately $38.85 million.
• An average purchase price of $38,569 per coin.

Since its initial investment in 2021, the company has seen an unrealized profit of nearly 77% on its holdings, demonstrating a long-term commitment to the primary cryptocurrency.