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Match Group, the parent company of popular dating app Tinder, said it was cutting research and development funding related to Web3 following disappointing second-quarter earnings and the departure of Tinder’s current chief executive.

in a letter On Aug. 2, Match Group CEO Bernard Kim revealed to shareholders that it would scale back its investment in Metaverse and cancel plans to launch an in-app virtual currency called Tinder Coins.

The move also comes with the resignation of Tinder CEO Renate Nyborg, whose first female CEO initially planned to launch “Tinder Universe” following the 2021 acquisition of a video AI and augmented reality company called Hyperconnect.

Nyborg plans to have Hyperconnect further develop its avatar-based “Single Town” experience as a way for Tinder users to meet and interact with each other in virtual spaces in the future.

While Kim didn’t specify the reason for Nyborg’s departure, he emphasized that Tinder “failed to achieve the monetization success we typically deliver” over the past few quarters.

In the letter, Kim said Match Group will continue to focus on the Metaverse space, but would prefer to wait for the “appropriate time.”

“I believe the Metaverse dating experience is important to attract the next generation of users […] However, given the uncertainty about the final contours of the metaverse and what will or will not work […] I’ve instructed the Hyperconnect team to iterate, but don’t [the] The Metaverse at this time. “

Kim went on to reveal that plans to launch Tinder Coins, an in-app virtual currency, were also canceled due to “mixed” test results.

“After seeing mixed results from testing Tinder Coins, we decided to take a step back and revisit the initiative so that it can contribute more effectively to Tinder’s revenue.”

“We also intend to think more about virtual goods to ensure they can be a real driver of Tinder’s next phase of growth and help us unlock untapped power users on the platform,” he added.

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“We will continue to carefully assess this area and will consider moving forward in due course when we have a clearer picture of the overall opportunity and feel our services are well-positioned to succeed.”

The company reported a 12% year-over-year increase in total revenue in the second quarter of 2022 to $795 million, while taking a $10 million operating loss due to impairments related to the Hyperconnect acquisition.

At the time of writing, shares of Match Group have fallen 11.39% to $63.24 over the past five days.