Match Group, the mother or father firm of well-liked relationship app Tinder, says it’s chopping funding for Web3-related analysis and growth amid disappointing Q2 earnings and the departure of Tinder’s present CEO.

In a letter to shareholders on Tuesday, Match Group CEO Bernard Kim revealed that it is going to be scaling again its metaverse investments in addition to scrapping plans to launch an in-app digital foreign money known as Tinder Cash.

The transfer additionally comes alongside the resignation of Tinder CEO Renate Nyborg, the corporate’s first feminine CEO, that had initially set out plans to introduce the “Tinderverse” after buying a video-AI and augmented actuality firm known as Hyperconnect in 2021.

Nyborg had deliberate for Hyperconnect to additional develop its avatar-based “Single City” expertise as a method for Tinder customers to fulfill and work together with each other in digital areas sooner or later.

Whereas Kim didn’t explicitly state the explanations for Nyborg’s departure, he highlighted that Tinder “has not been in a position to understand the monetization success that we sometimes ship” all through the previous few quarters.

In his letter, Kim mentioned that Match Group would proceed to look at the Metaverse house however would favor to attend for the “applicable time:”

“I imagine a Metaverse relationship expertise is essential to seize the subsequent technology of customers […] Nevertheless, given uncertainty in regards to the final contours of the Metaverse and what’s going to or received’t work […] I’ve instructed the Hyperconnect group to iterate however not make investments closely in [the] Metaverse at the moment.”

Kim went on to reveal that plans to launch an in-app digital foreign money, Tinder Cash, had additionally been scrapped as a consequence of “blended outcomes” from testing:

“After seeing blended outcomes from testing Tinder Cash, we’ve determined to take a step again and re-examine that initiative in order that it could possibly extra successfully contribute to Tinder’s income.”

“We additionally intend to do extra serious about digital items to make sure that they could be a actual driver for Tinder’s subsequent leg of progress and assist us unlock the untapped energy customers on the platform,” he added.

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“We’ll proceed to judge this house rigorously, and we’ll contemplate transferring ahead on the applicable time when we now have extra readability on the general alternative and really feel we now have a service that’s well-positioned to succeed.”

The corporate reported a 12% year-on-year progress in whole income in Q2 2022, reaching $795 million, alongside a $10 million working loss as a consequence of impairments referring to its Hyperconnect acquisition.

Match Group inventory is down 11.39% over the past 5 days to $63.24 on the time of writing.