Tinder Swipes Left on Metaverse Funding, Digital Token Plans Amid Disappointing Earnings

In the backdrop of disappointing Q2 earnings, Match Group has decided to cut-back on its metaverse funding and Tinder Coin development

By Radhika Parashar | Updated: 4 August 2022 18:44 IST

Tinder Swipes Left on Metaverse Funding, Digital Token Plans Amid Disappointing Earnings

Photo Credit: Facebook/ Twitter

The dating app was looking to bring up a metaverse platform for singles to meet as virtual avatars

Highlights

Tinder is trying to manage funds after reporting disappointing earnings
The firm’s metaverse project was tentatively named Tinderverse
Tinder CEO said Tinder Coin initiative garnered mixed results

Tinder parent company Match Group has decided to temporarily draw curtains on its Web3 plans. In the backdrop of disappointing Q2 earnings, Match Group has decided to cut-back on its metaverse funding and Tinder Coin development. Bernard Kim, the CEO of Match Group revealed to his investors that it reported a $10 million (roughly Rs. 80 crore) operating loss due to impairments relating to its Hyperconnect acquisition. Tinder's decision follows the resignation of Renate Nyborg, the company's first female CEO who wanted to introduce the ‘Tinderverse'.

The dating app was looking to bring up this metaverse platform for singles to meet as virtual avatars on digital dates. Unfortunately, this plan by Tinder has currently taken a backseat.

“I believe a metaverse dating experience is important to capture the next generation of users. However, given uncertainty about the ultimate contours of the Metaverse and what will or won't work. I've instructed the Hyperconnect team to iterate but not invest heavily in [the] Metaverse at this time,” said Kim.

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Citing ‘mixed results' from Tinder Coin testing as a reason for scrapping it, Kim has said that the company will re-examine the initiative.

Tinder intends to garner more revenue with its Tinder Coin initiative.

“We also intend to do more thinking about virtual goods to ensure that they can be a real driver for Tinder's next leg of growth and help us unlock the untapped power users on the platform,” the report states.

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And here I was getting all ready lol :upside_down_face: pic.twitter.com/gzWYYTFKdE
— ɅLFIE (@Degen_Alfie) August 4, 2022

Meanwhile, Tinder has recently emerged as a hotspot for crypto scammers, looking out for potential victims.

In October last year, Sophos cybersecurity researchers identified a Bitcoin wallet filled with tokens worth $1.4 million (roughly Rs. 10 crores) that were collected through scams. The crypto scammers were targeting iPhone users on popular dating apps such as Tinder and Bumble.

Why is Oppo making strange choices with its flagship Reno series? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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Further reading: Cryptocurrency, Tinder, Tinder Coin, Metaverse

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More