Mercado Libre to sunset Mercado Coin and shift rewards to Meli Dolar
Mercado Libre will sunset its loyalty token Mercado Coin after users get a deadline of April 17 to redeem or spend balances via the Mercado Pago app. Any unused Mercado Coin will be converted to Brazilian reals, creating a direct localized supply/utility squeeze for Mercado Coin.
The company is not ending crypto rewards. Instead, it is shifting incentives to its US-dollar stablecoin, Meli Dolar (MUSD). Customers can use MUSD for everyday payments and peer-to-peer transfers, and Meli+ users may earn cash back on MUSD purchases. The move suggests demand could rotate from Mercado Coin to MUSD rather than disappearing.
Separately, Mercado Libre says it still holds 570.4 BTC in its treasury, while providing crypto services through Mercado Pago across markets including Brazil, Mexico, and Chile.
For traders, the key takeaway is that Mercado Coin faces clear wind-down and potential sell-pressure from forced balance conversion, but broader market impact is likely limited because Mercado Libre’s rails and stablecoin rewards remain active.
Bearish
Mercado Coin faces a defined sunset and forced redemption/expiry mechanics (conversion of unused balances to Brazilian reals). That typically pressures price via localized sell pressure and a sharp decline in perceived utility for Mercado Coin holders.
However, the broader impact is likely contained. Mercado Libre is redirecting rewards to Meli Dolar (MUSD), which can absorb part of the user activity and reduce the chance of a total loyalty-program demand collapse. Over the short term, traders may see elevated volatility around the April 17 deadline; over the long term, Mercado Coin’s liquidity and incentive relevance should continue to deteriorate unless a secondary market/community adoption emerges.
So, the expected price impact on Mercado Coin itself is bearish, while the stablecoin transition may shift flows rather than remove them entirely.