Mercado Libre Ends Mercado Coin, Adopts Stablecoin Strategy
- Mercado Libre is discontinuing its ERC-20 loyalty token, Mercado Coin, on April 17.
- Users can sell the token, use it as purchase credit, or let it convert to local fiat automatically.
- Launched in August 2022 in Brazil on Ethereum, the token failed to gain traction.
- The company introduced MeliDolar (MUSD), a stablecoin pegged to the U.S. dollar, in August.
- Bitcoin holdings exceed $38 million on Mercado Libre’s balance sheet.
Mercado Libre has decided to end its experiment with Mercado Coin due to its lack of adoption and volatility issues. Instead, the company is pivoting towards a more stable cryptocurrency approach with MeliDolar (MUSD), which offers users a secure and predictable value proposition.
This transition highlights the challenges faced by reward tokens like Mercado Coin and Nubank’s Nucoin, both of which struggled in the market. (Source)
