Tinder abandons its project in the Metaverse. While more and more large companies today decide to invest in the future with Web3, many are also choosing to play the card of patience. Tinder is certainly one of the most striking examples since the famous online dating company has decided to follow for the moment to slow down its development with Web3 and Metaverse.
Indeed, Bernard Kim, the CEO of Match Group, the parent company of Tinder, announced during an interview that he intended to put in place a policy aimed at curbing all initiatives coming from Tinder in terms of the world of cryptos. The main reason for such a choice is mainly due to disappointing quarterly revenues.
Initiatives with mixed results
In 2021, Tinder launched the development of several projects related to the virtual world. The dating app wanted to capitalize on recent public interest in the Metaverse to produce its own platform that could accommodate its subscribers. It is in this perspective that there was the acquisition of the company Hyperconnect.
This purchase was intended to help Tinder develop new features in the field of augmented reality and artificial intelligence. Thus, using the know-how of Hyperconnect engineers, a platform using the Metaverse called Single Town was produced.
At the same time, the dating app has also taken a strong interest in cryptocurrencies. Also, in 2021 it launched its own tokens called Tinder Coins. These tokens are intended to encourage users to spend more time on the application and therefore indirectly spend more.
With these tokens, any user can acquire them as long as they are active on the platform. Anyone who keeps their profile up to date can also receive them, but they can also be purchased with traditional money (dollars, euros…).
Insufficient results
However, according to reports and details provided by Match Group, these initiatives have not had the desired effect. As a result, the group decided to revise several of the initiatives launched by its subdivisions. In the case of Tinder, cryptocurrency and Metaverse plans are suspended until further notice.
If it is true that between April and June, the company recorded a turnover of 795 million dollars, this sum remains well below the expected estimates. Indeed, the situations of the experts led to hope for an amount of around 804 million dollars.
Although the numbers produced this semester represent a 12% increase over last year, they clearly fell short of the company's expectations. Moreover, despite this increase, the company incurred a loss of $10 million in connection with the acquisition of Hyperconnect.
The indefinite suspension of the Metaverse project of Tinder
During his interview, the CEO of Match, Bernard Kim, provided more details on the will of the parent company of the dating application. According to him, the teams in charge of the development of the Single Town platform have received authorization to continue to evaluate the impact of the Metaverse.
However, he clarifies that Tinder plans to get back in the game only once a profitable plan is in place. From these statements, it should simply be noted that Tinder has chosen to adopt a more cautious policy in the face of the development of new technologies.
It was in a letter to Match shareholders that Kim announced the suspension of Metaverse operations. As we learn through the press release, the priorities are no longer the development of a platform for the Metaverse at least for the moment.
Indeed, a new organizational policy, as well as new directives, have just been defined following the latest results. The CEO of Match Group explains as follows:
"I think using the Metaverse for dating is an important step in targeting the next generations. Nevertheless, following the current uncertainties regarding this new environment and especially what will work or not, I asked the Hyperconnect team to continue their research, but not to invest heavily in this area for the moment."
The abandonment of the Tinder Coins project
Tinder Coins is another project that the company has decided to cancel for the time being. Thus, this crypto already available on the dating app in some parts of the globe will also disappear. Kim justifies the choice to abandon the project by the fact that its results were quite disappointing:
"After seeing the mixed results of the Tinder Coins test, we decided to take a step back and re-evaluate this initiative so that it can have a more positive impact on Tinder's profits."
There's no denying that Tinder's results over the past quarter fell short of expectations. Therefore, logically, the company seeks to reorganize itself by temporarily dismissing costly projects whose profitability is low.
If more and more industries such as the fashion sector are interested in the Metaverse also because it could radically change their functioning, it is still a relatively recent environment where all doubts are allowed as to the evolution of the web . in the years to come and the impact of these companies on it.
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