Tinder kills plan to make users date in the metaverse

Tinder also pushed back its virtual currency, Tinder Coins, and lost its chief executive

(AFP via Getty Images)

Tinder’s parent company, Match Group, has announced that it is killing the dating app’s plans for a metaverse expansion.

The company had planned to create a new form of online dating in a virtual world after purchasing video-based social media company Hyperconnect but has now said it’s unclear how the metaverse – generally considered an ‘embodied internet’ – will develop. Match Group also owns Bumble, Hinge, OkCupid, PlentyOfFish, Match.com, and more.

“I believe a metaverse dating experience is important to capture the next generation of users, and Hyperconnect has been innovating in this area. However, given uncertainty about the ultimate contours of the metaverse and what will or won’t work, as well as the more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in metaverse at this time”, Match Group chief executive Bernard Kim wrote in a shareholder letter.

“We’ll continue to evaluate this space carefully, and we will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service that is well-positioned to succeed.”

Tinder has also slowed its development of Tinder Coins, a virtual currency which could have been integrated with a blockchain or other crypto technology.

“After seeing mixed results from testing Tinder Coins, we’ve decided to take a step back and re-examine that initiative so that it can more effectively contribute to Tinder’s revenue”, Mr Kim wrote.

“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 news comes as Match Group, like other technology companies like Meta and Google, are facing significant limits to their growth. The company’s revenue was up, but it suffered a $10 million operating loss.

“Tinder’s current revenue growth expectations for the second half of the year are below our original expectations as a result of disappointing execution on several optimizations and new product initiatives”, Mr Kim said.

Tinder has also replaced its chief executive, Renate Nyborg, who is leaving the company company less than one year since joining. Mr Kim he will oversee a team of executives who will be managing the company until it finds a permanent head.