Match Group, the company behind the Tinder online dating application, has temporarily decided to halt any capital investments in the metaverse. Tinder is also shifting its attention away from the metaverse and crypto asset sectors.
Match Group scales back on metaverse plans
Match Group released a letter for the second quarter where the company’s new CEO, Bernard Kim, admitted that a dating experience on the metaverse could attract the next generation of users. However, it also mentioned that there were uncertainties in the use and adoption rate of metaverse offerings, citing this as the reason for retracting its Web3 plans.
Match Group had already made several moves to support its activity towards the metaverse. The company had finalized the acquisition of Hyperconnect, a video and AR start-up based in Seoul. The acquisition was completed in 2021 for $1.7 billion.
However, the letter sent by the CEO to shareholders has urged the company to refrain from investing heavily in the metaverse. The intention of scaling back on metaverse coins could be attributed to the ongoing crypto bear market that has wiped off billions of dollars from the market.
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Tinder scales back on in-app currencies
The metaverse is not the only crypto-related plan that Tinder is scaling back on. The online dating app is also scaling back on its plan for a digital currency called Tinder Coins. The latter was a company designed to be an in-app currency that could support its revenue figures.
Some of the revenue numbers delivered by the company come from several services such as subscriptions, boost functions, and super likes. The Tinder Coins project underwent a pilot testing program in Australia and is set for a global launch this quarter. However, the plans for this project have now been suspended until a later date.
The letter by the company’s CEO said that testing Tinder Coins had mixed results. Match Group has also said that it will take a step back and reassess the initiative to understand how it can better contribute to the revenues offered by Tinder.
Match Group is a company based in Texas. The company owns several dating applications, among them Hinge and Plenty of Fish, and others. The company also said it needed to conduct a thorough investigation into digital services to guarantee they will propel the growth of Tinder and allow the company to unlock the power of users on the platform.