Crypto and Blockchain have changed online dating sites as we know it

In the wake of the pandemic, human social interactions have become increasingly digital, as a variety of online services and social networks have made it easier than ever for people to connect using digital tools.

Today, it has become almost normal for people to connect with strangers via the internet, hoping that the interaction will turn into a lasting friendship, or turn into something more romantic.

Even in the wake of Metaverse and the transition to Web 3.0, social networking companies, including Facebook parent company Meta, have become increasingly interested in the possibilities that await within virtual and augmented reality. In 2021, the company spent more than $10 billion to help build the metaverse, an enthusiastic partnership that has now led to other major tech giants throwing their hats into the ring as well.

From Google, Amazon, and Qualcomm, metaverse, along with its interlocking services and products, including cryptocurrencies, decentralized finance (DeFi), Non Fungible Tokens (NFT), and blockchain-based virtual reality gaming, has completely changed the future of digital. social spectrum.

While these companies play a massive role in the further development of the Metaverse and Web 3.0, an alternative branch of online social networking has also picked up the trend in recent years – online dating.

Dating has gone digital and it’s only looking to gain further momentum in the wake of the metaverse and Web 3.0 technologies.

Although not as big as conventional social networks, online dating sees more than 300 million users worldwide, of which 20 million pay for premium features.

San Francisco-based software and technology company Sensor Tower Usage Intelligence data found that global usage of popular social dating apps such as Tinder, Bumble and Hinge collectively grew by 17% in January 2022 compared to the same month in 2019.

Online dating has become a catalyst for many users, a place where they can connect with people with the potential for the relationship to turn into something more romantic and intimate.

While it is possible to say that crypto and blockchain have left no industry untouched, its overarching influence has also led to a sharp increase in online fraud, phishing and extortion in recent years.

Shaken out of millions of dollars, the most famous and infamous of all scams was the renowned Tinder Swindler, which in early 2021 received its own Netflix documentary.

The few minutes of fame created a polarizing view of the growing fraud problems facing many online dating apps and social networks. The Federal Trade Commission (FTC) reported that over the past five years, online users and consumers have reported more than $1.3 billion in losses, with 2021 having more than $547 million in reported losses, the most on record.

But crypto is also no shy competitor to online scams, especially on dating sites and apps, and has played both assailant and victim to the growing number of scams costing users millions in crypto and fiat currencies each year.

It doesn’t look like dating apps or social networks will see a decline in active users anytime soon. And with the growing interest in cryptocurrencies and blockchain protocols, how have these technologies changed online dating services, and what are the potential threats and rewards they could bring to the table?

Crypto’s unconventional influence on online dating

While research has found that about 16% of Americans have invested in crypto or some form of it in the past couple of years, a survey of the impact on online dating earlier this year found that owning crypto or related products can make users act more attractive online. .

Yes, that’s right, for the millions who own or operate the crypto market and have a dating profile on one of the many online dating sites, it was found that 33% of Americans claimed they were more likely to go on a date with if some mentioned crypto assets in their online dating profile.

More interestingly, it found that three out of four adults would consider a second date with someone if they paid the bill in Bitcoin (BTC). Another 20% of singles also claimed to be romantically interested in someone if their profile picture or avatar was set to an NFT, according to findings from eToro.

Crypto is not only an indication of progressivism anymore, but it helps many people find dates and foster intimate relationships with those who use online dating.

Although it is interesting to see how the recent pandemic and the ongoing economic challenges have sparked a lot of interest in cryptocurrencies. The challenging economic conditions have led many people to look for partners who are more financially stable and have some form of financial security, regardless of age.

Investment firms and brokers have been closely watching the crypto moving average in the broader market as widespread use becomes more common among various consumer-focused industries.

While not shying away from crypto’s impact on online dating, some Web 3.0 entrepreneurs and soon-to-be startups are now taking advantage of crypto and DeFi as a way to monetize online dating and physical intimacy.

While work on these yet-to-be-launched mobile apps, Datingverse and Sexn, is still ongoing, the concept is pretty simple.

Datingverse, a dating world that exists primarily in the Metaverse, is looking to pay users in cryptocurrency to go on dates with other Metaverse users. Even if the date was a success or a complete disaster, users will still be compensated – in crypto – for their so-called date.

The motivation behind the concept is to change how people interact with each other in the Metaverse, and help create more motivation for users to both use online dating and realize their potential in the virtual and augmented world.

Similarly, Sexn is another yet-to-be-launched dating app that wants to pay users in crypto, but this time it’s for when users engage in sex or self-stimulation.

The app will use smartwatches as a way to monitor these intimate activities by assessing heart rates, blood oxygen levels and respiration rates. The technical aspects extend beyond tracking or monitoring user data, as clinical analytics will help the app reward and compensate users based on their sexual activities.

The concept behind Sexn is nothing new, the startup simply takes the idea global through mass commercialization.

Recent changes and modifications in financial regulations and digital payment policies that seek to curb the growing problem of sex trafficking made it more difficult for many sex workers and adult entertainers to shop online.

So instead, many have looked to cryptocurrencies as a way to accept payments, with some creating personal tokens for their services and products, while some cash in more than $1.3 million in one year, according to CNBC reports.

The combination of crypto and dating apps has opened up new opportunities for both users and Web 3.0 entrepreneurs who can cash in on its growing popularity. Although it is completely different from what many thought cryptos would be, it provides real solutions – in some cases – for many netizens and professional adult entertainers.

The not so good of crypto in online dating

While blockchain features and cryptoassets can create a number of positive aspects for entrepreneurs and users, both in the real and virtual worlds, it has also caused chaos in recent months, and not for good reasons.

The first bucket of bad news is the somewhat recent crackdown by Congress, more so, the House Committee on Oversight and Reform and the steps it has taken to increase pressure on crypto exchange platforms to protect American users from the alarming amount of fraudsters operating in space.

The seriousness of crypto fraud has now involved several federal agencies, including the Treasury Department, the Federal Trade Commission, the Commodity Futures Trading Commission and the Securities and Exchange Commission.

Alongside these are also popular digital asset exchanges, Coinbase, FTX, Binance, KuCoin and Kraken. The House committee is requesting additional information on the protocols these agencies and platforms use to help combat the more than $1.3 billion lost to cyber fraud and the skyrocketing rate of cyber fraud plaguing the crypto world.

Apart from widespread fraud on digital exchanges, a new trend has also reached far and wide targeting users who frequently make use of online dating sites and social networks.

Known as “Pig Butchering”, a method in which fraudsters infiltrate and hack users’ accounts and phones through interactions on dating apps and social networking platforms.

Hackers, or “butchers”, create fake accounts as a way to build relationships with their potential victims. Typically, butchers will look towards employees or users of online dating sites who work in tech or crypto-based industries.

A recent incident saw two victims, one from a Silicon Valley tech company, lose $2.5 million in life savings after a malware attack infected their devices and tapped their accounts.

The rise in suspicious activity has led many to question the legitimacy of crypto and other digital assets outside of the financial services ecosystem. Instead of floating or operating on more traditional and conservative means, it has now become almost too powerful to stop, as widespread adoption and exploitation are at the fore.

The number of scams, ranging from users asking for money to buy plane tickets to meet potential lovers, to creating fake accounts using real photos of members of the military to recruit victims, has raised red flags in several industries.

In a study by Pew Research, around half 53% of Americans surveyed cited dating apps as a very or somewhat safe place to meet new people, the latter, 46% believe these apps and sites are not safe at all and are harassed by malicious activities.

Opinions around online dating and dating apps vary, and many have argued that while it remains a popular place to meet and find new people, especially for those looking for something more romantic or intimate, many still report having negative interactions on these platforms .

Regardless of which lens we look at these online dating apps, it’s clear that digital technology — crypto and blockchain — has already improved the online dating and social networking world to some extent.

The bottom line

Our increasing need for social interactions will only continue to grow in the coming decades, and the use of dating apps and social networks will only play a more important role in our daily lives as we move from the offline world to the virtual one. world.

The combination of efforts, from Metaverse to blockchain-based protocols and digital assets, have all had a major impact on our perception of online dating and how we use these apps to meet and interact with people, and more importantly, become more accustomed to the notions of cryptocurrencies in our lives ours.

Although transaction progress is rapidly increasing, it is important for developers and entrepreneurs to consider the importance of user security in the broader spectrum. The skyrocketing number of online dating scams, combined with the rise of cryptocurrencies and other digital assets has only polluted the industry, setting the pace behind the so-called Web 3.0 revolution.

So, will cryptocurrency and blockchain technology help bring more integrity to online dating, or will we see it as a new way for many to catfish into users’ lives just to crater the industry even further, a tough call to make, but all depends who can ask, and which way do they swipe?