You are the new PM for a new crypto exchange. Set a product roadmap and define the core metrics for the first 18 months.

Question

You are the new PM for a new crypto exchange. Set a product roadmap and define the core metrics for the first 18 months.

1. Setup a technical product roadmap indicating different features as well as integrations.

2. Define the core engagement & growth metrics and how you plan to execute them.

Bonus

Who are your customers? Segment them based on use cases.

Asked at Meta (Facebook) over a year ago

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Bobate · Answer 1 · 2021-01-31T08:49:45+0000

Start answering this problem solving questions with this:

Assumptions:

Crypto exchange = a place where you can buy and sell crypto currency.
New crypto exchange - brand new, has to built from ground up
Given this is an interview at FB, I'd like to assume that we are a new team at FB. FB wants to get into the crypto business.
Crypto exchange will be based in the US (atleast initially)

Why does FB create a crypto exchange? FM mission is to empower people to be able to find community. Currently cryptocurrency is primarily an investment vehicle for true believers who feel that decentralized systems will be the way of the future. Cryptocurrency is not widely accepted so lot of people trade crypto like they do stocks. These people likely know very few others in their own life who invest and believe in crypto as such they need 'community' of like minded people who they can communicate with. As such in line with FB mission.

Start off by segmenting FB users, let's use non-traders ,novice, intermediate and advanced traders as segments. I chose this axis to segment users as I assume trading and buying crypto are strongly correlated.

A note on crypto exchange market - cryptocurrency has been around for over 5 years so there are established market leaders in place. We need to be savvy with target segment choice and feature set. FB can differentiate and add value using the social aspect - bring like minded people together, create a space for discussion and exchange of information. FB groups could really help out in this case.

I'll choose 'novice' traders as my target segment as they are most likely to adopt. They know about crypto but not yet adopted a new app for trading. They likely will appreciate the social aspect for learning and discussion. They are also a large user base.

since this is the first 18 months for the product, Our goal is to find product market fit. We want to prove our hypotheses that noviceu sers will adopt a fb crypto exchange. We want to make sure that people are adopting the crypto exchange, so people are actually holding some cryptocurrency.So the metrics we keep an eye on are acquisition , activation and retention to some extent. Some key metrics:

Acquisition:

# of new users per day who sign up
# of people viewing sign up CTAs
CTR on sign up CTAs
Demographics of people signing up

Activation - defined assomeone who signed up and made one transaction atleast

%of users activated vs with signups
Avg value of user's wallet
Avg number of trades per user
# of users making first transaction

Retention

DAU
MAU
7 day retention, 30dayretention
Churn

While all these metrics are important I'd keep an eye on # of usersmaking first transaction as my north star for the first 18 months for this new service.

Cryto exchange has the following use cases:

Sign up
Buy crypto
Sell crypto
View various crypto with corresponding costs
Wallet
user profiles
Chat/messaging platform
Discussion,comment threads
news feed
Crypto search and value tracker and visualization

I would first prioritize an MVP that can be madeavailable to linmited invite only user group with basic functionality before allowing wider signup.

MVP = Optin, buy and sell crypto(limited set), wallet, newsfeed and communication platform

T+4mo = MVP

t+4 to T+6 months get feedbackand iterate, bug fixing + new feature development

t+6-t+7 months slow ramp up, onboard new users. Measure and improve acquisition funnel

t+8 months make available to all users, iterate on funnel enhancements

technical integrations:

1. Buy crypto - ability to collect payment instrument info and charge payment method and allocate crypto. Integrations to payment gateway/processor and crypto clearing house

2. Sell crypto -lookup cryptovalue and exchange to $

3. 'exchange'/marketplace - database of buyers and sellers withcorresponding demand based pricing

4. Integrations with FB newsfeed, groups anduser profiles infrastructure

5. User wallets

Caveats - I would suspect noviceu sers to try and quit. They likely opt in in large numbers but tough to retain and be active. Reasons for FB to create a crypto exchange is also suspect. I'd think long and hard on if this was the right direction for FB. Cold start problem - have enough buyers and seelers on the marketplace.