Match Group, which is the company that founded Tinder, has made the decision to step back from the dating plan it had for Metaverse. The firm is also scrapping Tinder’s plans to offer the Tinder currency. Decisions came amid a disappointing second-quarter earning. What’s more, CEO of Tinder, Renate Nyborg, just a year ago took the role and now also will be leaving the company.
Here’s why to Tinder’s decision to scrap the Metaverse plans.
Why Did Tinder Scrapped The Plan For Metaverse Dating?
During the second quarter, Tinder shares went down by a big margin of 22% due to the acquisition of Hyperconnect. A total of $10 million were loss in operation. While the yearly growth in total revenue was up by 12%, these earnings did not meet the expectations of analysts for Q2. Meanwhile, Match Group CEO Bernard Kim commented about the issue to “disappointing execution on several optimisation and new product initiatives.”
Amidst all this is why Tinder has decided to take the step back from Metaverse plans. Kim also said that Hyperconnect has been instructed to scale back.
Kim said “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 this space carefully.” He further added that after having more clarity on what opportunities are available, they will move forward with a service that is better-positioned for success at the right time.
In addition, Tinder Coins, the virtual currency on Tinder is no longer being released at this moment. Kim said that because of the “mixed results” from Tinder Coin tests, the company decided to take a step back and re-examining the initiative. For the latest NFT news, follow NFTeller.