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Blitzbuilding Product with Rails

Yi-Ting Cheng
April 19, 2018
1.3k

Blitzbuilding Product with Rails

My RailsConf 2018 presentation. Story of how I build a crypto exchanges ( OTCBTC https://otctbtc.com) under 1 month and get 300X growth in next 60 days.

Business & Advanced version of my last talk in 2016 RailsPacific:
https://www.youtube.com/watch?v=V3TWE5k3fnM
( about winning a world hackathon in 7 hours )

Yi-Ting Cheng

April 19, 2018
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Transcript

  1. Blitzbuilding Product
    with Rails
    YiTing Cheng

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  2. Xdite ( Yi-Ting Cheng )
    1. Founder & CEO of OTCBTC
    2. CTO of ico.info
    3. Organizer of RailsPacific
    4. Built product with Rails since 2007

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  3. Fiat Coin
    OTC Crypto Exchange

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  4. Fiat Coin
    You can think of OTC market as an “eBay for Crypto”,
    where you can buy and sell cryptocurrencies to and from
    others using fiat currencies.

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  5. Coin Coin
    The other part is cryptocurrency exchange, where you
    can use BTC to buy and sell other cryptocurrencies.

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  6. 300X growth ( in 60 days )

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  7. OTCBTC
    • Launch at 2017/10/26
    • Over 50000 users ( in first month)
    • Over 1.5 Billion CNY in GMV ( in first month)

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  8. OTCBTC
    • Break even at first month
    • NPS > 70
    • Growth Rate 20%+ (weekly)

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  9. Building Unicorn Product
    with Rails
    YiTing Cheng

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  10. Developer Entrepreneur

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  11. Developer Entrepreneur
    • Step 1: Quit Job in 2012
    • Step 2: Open my own Rails consultancy
    • Step 3: Join an Series A company in 2014
    • Step 4: Quit job again to start my business in 2015

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  12. Developer Entrepreneur
    • Step 5: Build a product that grow rapidly
    • Step 6: Build a product that grow rapidly and
    go big for multiple times in 2018

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  13. Part 1 : Choosing the topic

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  14. • Online Rails code camp
    • 500 students / batch
    • 2M USD revenue in 6 month
    2016 —

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  15. • ICO platform
    • Crypto version Kickstater
    • 22 projects in 2 moth
    • 200 M USD
    • Got shutdown….
    2017 —

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  16. What is ICO ?
    • Raising money from Crypto
    • Using ETH to contribute
    • ICO madness in 2017/05
    • Everyone wants to invest in crypto for 10x return
    ETH
    Token

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  17. • Catch the rising trend
    • Monopoly
    • Reinvent the wheels
    • Big market
    • Huge population

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  18. What’s the next?

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  19. Crypto exchanges
    • Crypto to Crypto
    • Fiat to Crypto
    • OTC exchanges

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  20. Crypto exchanges
    • Crypto to Crypto
    • Fiat to Crypto
    • OTC exchanges
    99%
    75%
    15%

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  21. Why OTC?
    • Too many competitors in crypto exchanges
    • Fiat exchanges need to have license in some country
    • OTC compliant with current law

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  22. The one and the only OTC

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  24. Part 2 : Launch the idea in 1 month

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  25. • Have the idea - 2017/09/22
    • Purchase the domain - 2017/09/23
    • Launch the product - 2017/10/26
    OTCBTC

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  26. • You product need 10x better than old one
    • 3X - Customers see current solution
    • 3X - Entrepreneurs see their solution
    • Build the 10x product, make competitor miserable
    10X Theory
    http://www.mikedp.com/articles/2017/4/12/10x-and-the-largest-technological-improvements-of-all-time

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  27. Agile?

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  28. • Scrum?
    • User Story? - Must have / Should have / Could Have / Nice to Have
    • Prototype?
    Build product in 1 Month

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  29. No

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  30. • Crypto Wallet + Advertise + Escrow
    • Chatroom
    Only build for MUST HAVE

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  31. • People hire you for
    “Jobs to be done”

    • Not because the
    platform look awesome
    Jobs to be done

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  32. • One more “character”, complexity: x2
    • One more “currency”, complexity: 2x
    • One more “language”, complexity : 10x
    Really Focus

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  33. • Build a site that people can post “Sell BTC offer”
    • Buy “BTC”
    • Built-in Chatroom
    • Simplified Chinese Only
    Step 1: Single-side market

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  34. • Build a site that people can post “Buy BTC offer”
    • Sell “BTC”
    Step 2: Double-side market

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  35. • Support ETH
    • Support Tradition Chinese
    Step 3: more currencies

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  36. Product Market Fit
    Solve real problem and get paid
    make team survive

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  37. Part 3 : Grow 20% every week

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  38. Customer Support on WeChat / Telegram

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  39. Intercom ( get replied in 5 mintutes)

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  40. Reduce Churn Rate

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  41. • Trader > Buyer
    • Protect the trader, reduce the churn rate
    User experience and operation

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  42. • Week 1 : Build for trading volume
    • Week 2: Trader’s experience
    • Week 3: Reduce customer complain
    • Week 4: Referral Program
    • Week 5: Reduce Fraud, automate everything ….
    One week, One Goal

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  43. Part 4: Onboarding-oriented

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  44. • 30% - Didn’t understand how to use
    • 30% - Didn’t feel the product value
    • 10% - other product is good
    • 10% - technical flaw…
    Why Customer left?

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  45. They don’t understand how to use
    therefore feel no value.

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  46. Before After
    Ongoing
    Why hesitate?
    Why they screw up
    at the first place
    Best practices
    Prevent “suicide”
    Checkpoint
    Positive cycle
    Testimonial
    Referral
    Reward
    Showcase

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  51. • Most product stop evolve after it’s launch
    • Most engineers thinks customers are idiot because
    “they are not smart enough to use our product”
    • When complains everywhere, it’s too late
    • It’s very hard to re-attract churned customers.
    • It’s all about speed and evolve.
    Pre-interact

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  52. Part 5: Viral Growth

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  53. Referral Program

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  55. Airbnb

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  56. Airbnb

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  57. • We started referral program after NPS > 70
    • Referral program only works when your product is
    good enough
    • Reduce acquisition cost
    It’s time to referral

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  59. And later we ICO …

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  60. OTCBTC
    • We have > 200,000 users, > 100M RMB GMV daily
    • Good profit , NPS > 70
    • The largest OTC exchanges in Asia
    • Building worldwide operation and engineer team
    • Well-founded in Our ICO
    • The one and only exchanges built with Rails

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  61. Summary

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  62. JOIN US
    https://career.otcbtc.com

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  63. When I am a developer
    • Dev-speed is everything, I choose Rails
    • Teamwork-speed is everything, I choose Scrum
    • Prototype-speed is everything, I choose User Story

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  64. When I am a entrepreneur
    • Topics and trends are important
    • Customers are important
    • Onboarding is very very important
    • Only make what user want
    • Always make product easy to use, and it’s OK without PM
    • Growth or Die

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  65. Q & A
    [email protected]
    twitter: @xdite

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