February 7, 2023

Dating giant Match Group has announced several adjustments to its management team along with disappointing second-quarter earnings. CEO, Renate Nyborg, revealed that massive investments in the metaverse will now take a back seat.

It was Tinder’s first foray into web 3 related research and metaverse development by the CEO. It unveiled its ambitious “Tinderverse” project after acquiring video-AI and augmented reality company Hyperconnect last year. However, the CEO of its parent company, Bernard Kim, said the online dating app would take things slow citing the “uncertainty” in the space.

Undo Metaverse and Web3

in message To contributors this week, Kim said that Tinder has been able to recognize the monetization successes that it usually achieves. In an effort to improve overall product execution and speed, the team CEO instructed the team to carefully evaluate Web3 and the metaverse space to understand more clearly.

“I believe that the metaverse dating experience is important to attract the next generation of users, and Hyperconnect has been innovating in this field. However, due to uncertainty about the ultimate frontiers of metaverse and what will or will not work, as well as the more challenging operating environment, I instructed the Hyperconnect team To reiterate but not invest heavily in the metaverse at this time.”

The Tinder Coins initiative is another initiative the company is planning to phase out. The idea of ​​a virtual currency was first brought up in October 2021. The goal was to encourage users to spend more time swiping and swiping, and thus spend real money on the US dating app.

The in-app currency was part of his effort to create an experience that goes beyond just the traditional “swipe right” method. The feature was subsequently launched in February of this year.

The decision to step back from Tinder’s fickle dating ambitions and discard plans to offer Tinder coins within the app comes along with the company’s first female CEO, Nyborg’s departure.

Tinder hassles

Kim attributed Tinder’s second-quarter performance to “disappointing implementation of several improvements and new product initiatives.” App engagements are down 22%.

It posted 12% year-over-year growth in total revenue in the second quarter, jumping $795 million while operating at a $10 million loss due to impairment related to the acquisition of Hyperconnect.

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