Dating giant Match Group has announced several changes to its management team, in addition to disappointing second quarter results. Its CEO, Renate Nyborg, revealed that heavy investment in the metaverse will now take a back seat.
Tinder’s first foray into web3-related research and metaverse development was previously envisioned by its director. She unveiled the ambitious “Tinderverse” project after acquiring a video AI and augmented reality company – Hyperconnect – last year. However, the CEO of the parent company, Bernard Kim, said the online dating app will take it easy, citing “uncertainty” in space.
Taking a step back from Metaverse and Web3
In a letter to shareholders this week, Kim said Tinder was able to deliver on the monetization successes it typically delivers. In an effort to improve the overall product execution and speed of the app, the director instructed the team to carefully evaluate the web3 and the metaverse space to gain more clarity.
“I believe a metaverse dating experience is important to capture the next generation of users, and Hyperconnect has innovated in this area. Given the uncertainty of the final contours of the metaverse and what will or will not work, as well as the more challenging work environment, I have instructed the Hyperconnect team to iterate, but not invest heavily in metaverse at this time.”
Tinder Coins initiative is yet another initiative that the company plans to scrap. It first came up with the idea of a virtual currency in October 2021. Its purpose was to encourage users to spend more time swiping, scrolling and then spending real money on the dating app in the US.
The in-app currency was part of her effort to create an experience beyond the traditional ‘swipe right’ method. The feature was then soft-launched in February of this year.
The decision to withdraw Tinder’s metaverse dating ambition and plans to offer in-app Tinder Coins coincides with the departure of the company’s first female CEO, Nyborg.
Tinder Problems
Kim attributed Tinder’s Q2 performance to “disappointing execution of several optimizations and new product initiatives.” Shares of the app fell 22%.
It posted 12% year-over-year growth in total revenue in the second quarter, up $795 million, while posting a $10 million loss due to impairment charges related to the Hyperconnect acquisition.
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