Tinder Withdraws Tinderverse Plan

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 of the popular dating app Tinder, announced a reduction in investment for Web3 research immediately after releasing poor Q2 financial results and appointing its CEO Renate Nyborg to leave.

In a letter to shareholders on August 2, Match Group CEO Bernard Kim revealed that they would scale back their metaverse investments and scrap their plans to issue Tinder Coin, the platform’s digital currency.

Previously, CEO Renate Nyborg revealed about “Tinderverse” after acquiring AI and augmented reality company Hyperconnect in 2021. This metaverse offers an exciting experience and a playground for Tinder users to meet and communicate. It is not clear why the CEO left the organization.

In the letter, Mr. Kim said Match Group would continue to monitor the metaverse space but want to wait for the right time, and the company will continue to evaluate this space with caution:

“After seeing mixed results from testing Tinder Coins, we’ve decided to take a step back and re-examine that initiative so that it can more effectively contribute to Tinder’s revenue. We also intend to do more thinking about virtual goods to ensure that they can be a real driver for Tinder’s next leg of growth and help us unlock the untapped power users on theplatform.”

Mark Zuckerberg’s Meta has recently recorded a loss of up to $2.8 billion from the company’s metaverse business division. However, he remains hugely optimistic and confident in his ambition. The current market is very difficult for companies looking to expand into this area, especially the crypto market.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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