Sebastian Sinclair

<div id="highlights-block_62ff32f9917b7" class="highlights">
 <ul>
 <li>Mercado Libre’s MercadoCoin is available to 500,000 users, with a further 80 million expected by month’s end</li>
 <li>The token lets users earn crypto rewards as cashback on purchases and pay for goods on Mercado’s e-commerce platform</li>
 </ul>
 
</div>



Latin American e-commerce company Mercado Libre has launched a token in Brazil, aimed at generating crypto cashback rewards on purchases, as well as the ability to pay for goods on its platform.



Dubbed MercadoCoin, the Ethereum-based token is tradable via the company’s digital payments platform, Mercado Pago. The endeavor is part of its loyalty program, designed to attract and retain customers.



<a href="https://www.reuters.com/technology/mercadolibre-create-cryptocurrency-part-loyalty-program-2022-08-18/" target="_blank" rel="noreferrer noopener">Reuters</a> first reported the news on Thursday, citing a press conference. Blockworks attempted to contact Mercado but did not immediately receive a response.



Mercado’s crypto pursuits can be viewed as a savvy play on the region’s <a href="https://cms.blockworks.co/74-of-latin-americans-prefer-businesses-that-accept-crypto-report/" target="_blank" rel="noreferrer noopener">high adoption rates of digital assets</a>. Latin America has continued to capture between 8% and 10% of global cryptocurrency activity, according to Chainalysis’ research, <a href="https://www.americasquarterly.org/article/is-crypto-the-path-to-financial-inclusion-in-latin-america/" target="_blank" rel="noreferrer noopener">reported</a> in March.



Emerging markets face considerable currency devaluation resulting from high rates of inflation, driving locals to purchase crypto on P2P platforms in a bid to <a href="https://cms.blockworks.co/employees-want-to-be-paid-in-crypto-report-shows/" target="_blank" rel="noreferrer noopener">preserve their savings</a>.



While crypto valuations have been impacted by the recent market rout spurred on by overleveraged lenders and a swing to bearish sentiment, the nascent asset class’s popularity in the region <a href="https://cms.blockworks.co/survey-more-than-half-of-latin-americans-have-paid-with-crypto/" target="_blank" rel="noreferrer noopener">remains high</a>.



The e-commerce giant began offering users access to bitcoin, ether and Paxos’ stablecoin PAX in December of last year after it partnered with the crypto service provider. Mercado also purchased a stake for an <a href="https://investor.mercadolibre.com/news-releases/news-release-details/mercado-libre-announces-investments-mercado-bitcoin-and-paxos" target="_blank" rel="noreferrer noopener">undisclosed sum</a> in crypto exchange MercadoBitcoin.com.br’s parent holding company 2TM and Paxos as a shareholder in January.



MercadoCoin is expected to be valued at $0.10 before being floated on the open market, Reuters reported. The crypto is available to 500,000 customers in Brazil, where it is anticipated to reach more than 80 million people by the end of the month.



The company also said the token will only be available to Brazilian nationals, with no timeframe given on an expansion to other Latin American countries. Despite using the ERC-20 token standard, trading will be limited to its Mercado Pago platform until further notice, Reuters reported.



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Brazil

Mercado Libre Broadens Crypto Offerings in Brazil

Jacquelyn Melinek

<div id="highlights-block_61af5ba63d9c8" class="highlights">
 <ul>
 <li>Delta Exchange has seen high demand in options, particularly on names such as Solana and Binance, company CEO says</li>
 <li>The platform has surpassed $400 million in daily volumes, and monthly volumes hit an all-time high of $12 billion</li>
 </ul>
 
</div>



Delta Exchange, a digital assets derivatives-based exchange, has launched its trade farming program that gives traders $50 million of rewards.



The platform is backed by a handful of investors including Sino Global, Aave Ventures, CoinFund, Kyber Network and Spartan.



Users who deposit and participate in trading activity for any contracts on the exchange platform will be eligible for rewards, according to the company. Its platform has futures and perpetual swaps available for bitcoin, ethereum and more than 100 other altcoins, as well as spot markets, markets on future-spreads and options for bitcoin, <a href="https://cms.blockworks.co/massmutuals-flourish-crypto-adds-eth-releases-regulatory-blueprint/">ethereum</a>, solana, cardano, binance, ripple, litecoin and others. 



The trade farming program will run from now through 2022 and rewards will be calculated and distributed on a daily basis, according to <a href="https://www.delta.exchange/">Delta</a> CEO Pankaj Balani. The daily reward pool is divided amongst traders in proportion to their fee paid.



“We have seen high demand in options, particularly on names such as Solana and Binance,” Balani noted. “We have seen over 20 times growth in options traders in the last six months and expect this trend to continue.”



Delta Exchange’s platform has surpassed $400 million in daily volumes, and monthly volumes hit an all-time high of $12 billion, the company said.&nbsp;



Derivatives are an imperative part of the cryptocurrency ecosystem and overall industry, Balani said.&nbsp;



&#8220;Institutional players need a liquid derivatives market to hedge themselves against volatility and downside,” Balani said. “Without liquid derivatives, the crypto market will not see sustainable institutional participation.”



The exchange plans to expand its options offerings by adding contracts on more underlying assets along with more strikes and maturities, Balani said.