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Tinder temporarily abandoned its plans to develop the metaverse and digital currency due to disappointing Q2 results and the departure of its current CEO.
Match Group, the parent company behind the popular dating app Tinder, said it was cutting funding for Web3 research shortly after the release of disappointing Q2 financial results and the departure of its top female CEO. Fairy Renate Nyborg.
— Yahoo Finance Plus (@yfinanceplus) August 3, 2022
In one Letters Sent to shareholders on August 2, Match Group CEO Bernard Kim revealed that they will be scaling back their metaverse investments as well as scrapping plans to issue Tinder Coins, the platform’s digital currency.
Previously, CEO Renate Nyborg had revealed about “Tinderverse” after acquiring AI and augmented reality company Hyperconnect in 2021. This is what the metaverse brings a fun experience and a playground for Tinder users to meet and interact with. However, it is still unclear the source of the female CEO’s decision to leave the organization.
In the letter, Mr. Kim said Match Group will continue to monitor the metaverse space but want to wait for the right time.
“I believe the dating experience in the Metaverse space is important to attract the next generation of users […] However, due to uncertainty, we have decided not to invest much in the metaverse at this time.
After receiving mixed reviews from testing Tinder Coin, we have decided to take a step back and rethink the initiative so that they contribute more effectively to Tinder’s revenue.”
Tinder will continue to evaluate this space cautiously, Kim added:
“We also plan to explore more of virtual goods to ensure that they will be a real driver of Tinder’s next leg of growth and bring more users to the platform.”
Recently, Tinder reported 12% year-over-year growth with total Q2 revenue of $795 million, and a $10 million loss due to its acquisition of Hyperconnect. Match Group stock has fallen 11.39% over the past 5 days to $63.24 at press time.
In related developments, Meta recently continued to record a loss of up to $ 2.8 billion from the company’s metaverse business division. However, in stark contrast to Tinder’s reaction, billionaire Mark Zuckerberg is still extremely optimistic and confident in his ambition.
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