Match Group Postpones Plans for Tinder in Crypto and the Metaverse
Match Group, the industry leader in online dating, has decided to postpone its earlier plans to have Tinder adopt cryptocurrencies and engage in metaverse-based dating because it is dissatisfied with one of its most popular brands.
Despite earlier bullish statements and its acquisition of social networking company Hyperconnect for an estimated USD 1.73 billion last year, Bernard Kim, CEO of Match Group, demonstrated a cautious approach toward integrating the company's services with metaverse in a letter to the group's shareholders recently published by the company.
A metaverse dating experience, according to the CEO, is crucial to attracting the newest users, but he said: "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."
The Match Group, according to Kim, will "continue to evaluate this space carefully" and will think about 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," she added.
All of this occurs after Kim expressed his dissatisfaction with Tinder's performance during the second quarter of 2022 and the service's stagnant growth. While Tinder's direct revenue increased by 13% year over year, Kim acknowledged that Match Group "has not been able to realize the monetization successes that we typically deliver" during the reported period.
"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," the CEO stated.
The company decided to "take a step back and re-examine that initiative so that it can more effectively contribute to Tinder's revenue" after experiencing "mixed results" from testing Tinder Coins, according to Kim's letter, which further demonstrates the company's cautious approach to the launch of dedicated tokens for its premium service.
"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," he added.
Meanwhile, Tinder CEO Renate Nyborg is leaving her position. Match Group has announced a number of management changes at Tinder, including hers. Kim will fill that position while looking for a permanent replacement.
By fLEXI tEAM