IRL social app is stopping operations due to fake user metrics

The IRL social app was shut down after the board discovered that 95% of users were bots. IRL achieved a valuation of $1.2 billion after raising more than $197 million from venture capitalists such as SoftBank.

Venture capitalists analyze metrics such as daily active users (DAU) of specific apps to make investment decisions. But unscrupulous players often fake their metrics through bots.

Social App IRL Sunsets Operations

The IRL social app has had over 20 million users. But according to the information, the board discovered that 95% of users were bots. The app aims to become an event planning solution for Gen Z.

The troubles started after IRL laid off – laid off temporarily 25% of her team last year. But a year earlier, IRL had at least tripled its workforce.

During the layoffs, it was reported that the company had enough cash to last through 2024. But now, there is no information on the social app’s runway IRL.

In parallel, the staff started doubt Former CEO Abraham Shafee claims of 20 million users. In the end, Shafi to resign from his position as CEO in April 2023. Now the company is shutting down operations due to malpractice in inflating user metrics.

Companies often face allegations of falsifying the number of users and other related metrics. BeInCrypto reported in March 2023 that short seller Hindenburg Research accused Jack Dorsey Block of inflating user metrics.

It is worth noting that IRL Starch More than $170 million from SoftBank in a Series C funding round in 2021.

SoftBank is a popular investment firm that also backs crypto startups such as non-fungible token (NFT) firm Sorare, analytics firm Elliptic, and now-bankrupt cryptocurrency exchange FTX.

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