Tinder’s parent company- Match Group- recently announced that it was cutting the funding for Web3- related research and development amid the disappointing earnings the company made in the second quarter and the departure of the current CEO of the subsidiary. In a letter that was issued to shareholders on Tuesday, Bernard Kim, the CEO of Match Group went on to reveal that they would be scaling back their investments for metaverse as well as scrap most plans of releasing an in-app digital currency which would be called Tinder Coins.
This move comes at the same time as the resignation of Renate Nyborg, the CEO of Tinder, who had initially introduced several plans for introducing the Tinderverse. This was supposed to be a possibility after the company acquired a video-AI and augmented reality company called Hyperconnect back in 2021.
Tinder To Scrap its Plans For Metaverse
Nyborg had also planned for the augmented reality company to develop its Single Town experience as a way for users of Tinder to meet and interact with one another in several virtual spaces in the future. Although the CEO of Match Group didn’t explicitly state the reasons behind the departure of Nyborg, he did highlight that the company had not been able to realize the monetization success that they usually delivered in the past. In his letter, Kim mentioned that the company wouldn’t completely trash the Metaverse idea, but would prefer to wait for the appropriate time.
Kim also went on to disclose that the plans for the release of Tinder Coins had also been scrapped due to the mixed results that came from testing. He added that the company had decided to debate more about virtual goods in order to ensure that they could be a real driver for the next leg of growth for the subsidiary of Match Group.