Is MercadoLibre's Crypto Bet a Risky Move? | Crypto

Is MercadoLibre’s Crypto Bet a Risky Move?

– The cryptocurrency market has been crashing after its massive run-up last year. This has caused investor sentiment to change, and investors are now preferring stable, reliable companies over speculative investments.
– MercadoLibre has built its own cryptocurrency, called MercadoCoin. This will be a loyalty rewards program for MercadoLibre’s e-commerce users.
– MercadoLibre is hoping that MercadoCoin will increase brand loyalty and convince consumers to keep using MercadoLibre’s e-commerce platform.
– MercadoLibre plans to roll this out to 500,000 Brazilian consumers in the initial phase of this launch.
– An important detail about MercadoCoin is that consumers can only trade it on Mercado Pago, the company’s fintech platform.
– Even with this announcement, MercadoLibre has only minor exposure to crypto.
– If MercadoCoin is successful, it would have to explode in popularity to reach the scale of MercadoLibre’s main businesses.

a stack of gold coins with zeroes and ones on them Is MercadoLibre's Crypto Bet a Risky Move?

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