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Mercado Libre, a leading Latam-based e-commerce, has announced the launch of its own token, called “Mercadocoin”, for Brazilian customers. The token will be the main reward for a loyalty program on Mercado Libre’s platform and will be awarded to customers who purchase certain goods linked to the token. The token will have an initial value of $0.10.
Mercado Libre, a unicorn for retailers and financial services in Latam, has announced inclusion of cryptocurrency as part of the royalty program. The company announced the launch of its own token, denominated mercadocoin, which will be used to provide its rewards to users. The token, to be issued on top of Ethereum, will be given to users who purchase certain items on Mercado Libre’s platform identified with the loyalty program.
The program, which is already being implemented, will only include Brazilian customers, although the company aims to expand it to other countries in Latam. However, Mercado Libre did not provide any details about this expansion. This initial phase will include only 500,000 people, but aims to reach a whopping 80 million customers before September.
Mercadocoin will first be launched at a price of $0.10 and then the company will float it in the market. While Mercado Libre has no plans to list the new token on external exchanges, it is an ERC-20 token and parallel markets can be funded in various decentralized exchanges such as Uniswap.
Reuters explains that this symbolic initiative seeks to improve the situation that the e-commerce giant is facing in Brazil, with stiff competition from new foreign companies such as Alibaba and Sea Ltd, whose sales figures have increased significantly.
The Mercadocoin token will have two different uses: It will serve as a means of payment for articles on the platform, and users will also be able to integrate with the trading services of Mercado Pago, exchanging it for other crypto-assets.
Mercado Libre’s crypto forays started last year, with the company launching trading services in November in Brazil. This month, the company announced that it would expand these trading services to more countries in Latam.
Marcos Galperin, the founder of Mercado Libre, is also a big supporter of cryptocurrencies, having declared that bitcoin was a better store of value than gold, but questioning its use because of the power needed to send or receive bitcoin.
What do you think of Mercado Libre’s new reward token? Tell us in the comments section below.
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