Mercado Libre, a leading Latin e-tailer, announced the launch of its own token for Brazilian customers called Mercadocoin. The token will be the main reward for loyalty programs on Mercado Libre’s platform and will be awarded to customers who purchase certain items linked to the token. The initial value of the token is $0.10.
Mercado Libre Launches Mercadocoin Token to Enhance Loyalty Program
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Mercado Libre, a Latam retail and financial services unicorn, has announced that its loyalty programannounced the inclusion of cryptocurrency as part of its loyalty program. The company announced the launch of its own token, denominated in mercadocoin, which will be used to reward users. Issued on Ethereum, the tokens will be granted to users who purchase certain goods on the Mercado Libre platform as identified in the loyalty program.
The program, which is already in place, will target Brazilian customers only, but aims to expand to other countries in Latin America. However, Mercado Libre has not disclosed details about this expansion. In this initial phase, the program will target only 500,000 customers, but aims to reach all 80 million by September.
Token Details
Mercadocoin will first be launched at a price of $0.10 and then allowed to float on the market Mercado Libre has no plans to list this new token on an external exchange It is not, but it is an ERC-20 token and can be used for parallel market funding on different decentralized exchanges such as Uniswap.
Reutersexplainsthat the token initiative seeks to improve the situation the e-retail giant is facing in Brazil, where it has fierce competition from emerging foreign companies such as Alibaba and Sea Corp, whose sales numbers have increased significantly.
Mercado Coin Tokens will have two different uses. In addition to serving as a means of payment for articles on the platform, users will be able to integrate with Mercado Pago’s trading services and exchange them for other crypto assets.
Mercado Libre’s crypto foray began last year, when the company launched its trading services in Brazil in November. This month, the company announced that it will expand these trading services to more countries in Latam.
Mercado Libre founder Marcos Galperin is also a big believer in cryptocurrencies, declaring that bitcoin is a better store of value than gold, but questioning its use because of the power required to send and receive bitcoin.
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