Match Group, the parent company of the dating app, Tinder has announced a series of decisions, including a step back from its metaverse dating plans. The firm is also scrapping Tinder’s plans to offer in-app Tinder Coins currency. The decisions come amid a disappointing second-quarter earnings. Additionally, Tinder CEO Renate Nyborg, who took the top job less than a year ago, will be leaving the company.
Let’s take a closer look at Tinder’s decision to scrap its metaverse plans.
Why is Tinder stepping back from metaverse dating plans?
In the second quarter, Tinder’s shares were down by 22%. Match Group stated that its acquisition of Hyperconnect led to an operating loss of $10 million. While the year-on-year growth in total revenue was up 12%, according to CNBC, the firm’s earnings did not meet analyst expectations for Q2. Meanwhile, Match Group CEO Bernard Kim attributed the issues to “disappointing execution on several optimizations and new product initiatives.”
Amid this, Tinder is taking a step back from its metaverse plans. Moreover, Kim said he has instructed Hyperconnect to scale back.
“Given uncertainty about the ultimate contours of the metaverse and what will or won’t work, as well as the more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in metaverse at this time,” Kim said. “We’ll continue to evaluate this space carefully, and we will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service that is well-positioned to succeed.”
Additionally, Tinder will not be releasing its virtual currency, Tinder Coins. Kim said that owing to the “mixed results” from Tinder Coin test runs, the company is taking a step back and re-examining the initiative.