Plans for Tinder metaverse have not been shelved, but it will not be a top priority either. The top dating site will continue its regular routine as a mobile app for Apple and Android.
The parent company, Match Group, said it will reduce spending on Web3-related research and development in light of the weak Q2 earnings.
Exiting Tinder CEO Renate Nyborg made the statement after she announced her resignation.
Tinder metaverse no more?
Match Group CEO Bernard Kim stated in a letter to shareholders that the company will reduce its investments in the metaverse. He also said that the company will abandon plans to introduce Tinder Coins. This cryptocurrency would have been the local tender within its supposed metaverse.
The decision coincides with the resignation of Tinder CEO Renate Nyborg, the first female CEO of the company. Nyborg had originally outlined ambitions to launch the “Tinderverse” after acquiring the video-AI and augmented reality startup Hyperconnect in 2021.
While Kim did not specify why Nyborg was leaving, he did note that Tinder “has not been able to realize the monetization success that we typically deliver” in recent quarters.
Waiting on the ‘appropriate time’
Kim stated in his letter that Match Group will continue to monitor the metaverse space but would prefer to wait till the “appropriate time.”
“…given uncertainty about the ultimate contours of the Metaverse and what will or won’t work […] I’ve instructed the Hyperconnect team to iterate but not invest heavily in [the] Metaverse at this time,” Kim said.
Kim continued, saying that the Tinder Coins in-app digital currency rollout were put on hold. The decision was because of “mixed results” from testing.
In the second quarter of 2022, the company’s overall sales increased by 12% year-on-year to $795 million. However, impairments related to its Hyperconnect purchase resulted in an operating loss of $10 million.
As of writing, the price of Match Group shares is at $63.24 after falling 11.39% over the last five days.