Match Group, the parent company of popular dating app Tinder, says it is cutting funding for Web3-related research and development amid disappointing second-quarter earnings and the departure of Tinder’s current CEO.

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AT letter To shareholders on August 2, Match Group CEO Bernard Kim revealed that he would be cutting back on his investment in Metaverse, as well as ditching plans to issue a virtual currency on an app called Tinder Coins.

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The move also comes with the resignation of Tinder CEO Renata Nyborg, the company’s first female CEO who originally planned to introduce “Tinderverse” following its 2021 acquisition of video AI and augmented reality company Hyperconnect.

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Nyborg planned that Hyperconnect would continue to develop its avatar-based “One City” experience so that Tinder users could meet and interact with each other in virtual spaces in the future.

While Kim did not explicitly state the reasons behind Nyborg’s departure, he stressed that Tinder “has failed to realize the monetization success we typically deliver” over the past few quarters.

In his letter, Kim said that the Match Group will continue to monitor the space of the Metaverse, but would prefer to wait for “the right time.”

“I believe the Metaverse dating experience is important in attracting the next generation of users. […] However, given the uncertainty about the final contours of the Metaverse and what will and will not work. […] I instructed the Hyperconnect team to iterate but not invest heavily in [the] The Metaverse at this time.”

Kim went on to reveal that plans to release a virtual currency on the Tinder Coins app have also been canceled due to “mixed results” from testing.

“After seeing the mixed results from testing Tinder Coins, we have decided to take a step back and revisit this initiative so that it can more effectively drive Tinder revenue.”

“We also intend to think more about virtual goods to make sure they can be a real driver for Tinder’s next phase of growth and help us unlock untapped power users on the platform,” he added.

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“We will continue to carefully evaluate this space and consider moving forward at an appropriate time when we have more clarity on the overall capability and feel like we have a service that has every chance of success.”

The company reported a 12% year-on-year growth in total revenue in the second quarter of 2022, reaching $795 million, along with a $10 million operating loss due to losses related to the acquisition of Hyperconnect.

Match Group shares are down 11.39% over the past five days to $63.24 at time of writing.