Tinder Distances Itself From Metaverse After Disappointing Results
Tinder is an online dating and geosocial networking application giant Match group that has expressed different modifications to its management team and disappointing second-quarter revenue.
Tinder CEO Renate Nyborg expressed that heavy investments in the metaverse will now need to stop.
Tinder's first foray into Web3-related research and metaverse development was previously envisioned by the exec. She unveiled the ambitious Tinderverse project after acquiring a video AI and augmented reality firm the CEO of its parent company Bemard Kim expressed the online dating app will take things slow citing uncertainty in the space.
Kim said Tinder was able to realize the monetization success that it typically delivers in a bid to improve the app's overall product execution and velocity the exec instructed the team to evaluate the Web3 and metaverse space carefully to grasp more clarity.
“I believe a metaverse dating experience is important to capture the next generation of users, and Hyperconnect has been innovating in this area. However, 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.”
Tinder Coins initiative is yet another initiative that the firm plans to scrap it first floated the idea of a virtual currency in October 2021. The goal was to encourage users to spend more time swiping scrolling and subsequently spending real money on the dating app in the United States of America.
The in-app currency was part of its efforts to create an experienced exit just its traditional swipe right method the feature was then soft-launched in February this year.
The decision to reverse Tinder's metaverse dating ambition and discard the aim to offer in app Tinder coins comes alongside the company's first CEO Nyborg's departure.
Kim expressed thanks to Tinder's Q2 performance to disappointing execution on different optimizations and new product initiatives. Shares of the app were decreased by 22%
It recorded a 12% year-on-year growth in total revenue in Quarter 2. an increase of $795 million while it was operating a loss of $10 million due to impairments relating to its Hyperconnect acquisition.