 Hi everyone, this is my first time to speak Rails, in Rails Conference. I always got rejected by Rails several times. So this time I decided to buy me a slot in this conference. So today I will talk about bridge building product with Rails. We all know like building product with Rails is very fast, but this time I will talking about how to use Rails to build a really profitable business in very short of time. This time I will talk about my exchange, OTC, BTC. So a little of my background. So I personal, it's like 10 years of Rails developer. So this before I go to business, so I become several roles, like in the, I start a consultancy before, I joined C-Convary before, but not well. But in these three years I study a business framework so I can combine my skills to business sense to become, to build like really fast growing framework. So today is about how I doing this. So into my background. I'm now the founder and the CEO of OTC, BTC. So most of OTC, BTC is called actually written by myself. The second background is CTO of ICO info. ICO info is, I don't know if you know about ICO. So ICO is another way to raising money from crypto. So I used to be the CTO of the Chinese, the largest ICO platform. I also host a Rails conference in my hometown, Taiwan. So the conference is called Rails Pacific. So this is a little of my background. So what is OTC, BTC is do? We have two kind of business. One is OTC. The other kind is a crypto exchange. So I will do some quick introduce to this business. OTC is kind of crypto eBay. You can buy crypto on the website. You'll see your fear, like kind of like buying product from the eBay. Just this time it's in crypto, like Bitcoin or Ethernet or all kind of crypto. The second part is like a normal exchange, just like stock exchange, just we trade with the crypto. So today's story is how about, how we build a product and get 300 times growth in just two months. The little OTC, BTC's background. So we launched last October. So when we first launched, we got very good trader record. The one is that we got 50,000 users in first month. And the second is we got 1.5 billion, Chinese dollars in GMV. GM is like gross merchant, kind of like total the trade value in first month. And we also break even immediately at the month. And we got a net promoter score. Net promoter score is a term in growth hacking. It means if your net promoter score is very high, then your product is highly chance get viral. So and we, our growth rate revenue and the trading volume growth rate is 20%. So today's topic is kind of building a unique product with Rails. How we achieve this achievement in just one month. This kind of like my personal walkthrough, like in these five years. So in like six years ago, I am like a developer, very senior developer. I know to build a lot of stuff, architecture, everything in Rails, I almost know and the very like have different average. But I'm not satisfied with my job. So I decided to go out to start my business. So I quit my job in 2012. So the first thing is I don't know what to do to build a business. So I decided to open a Rails consultancy. And pretty much every Rails developer quit their job. They want to start up, they will do this. But at the one year I find out I really hate Rails consultancy. It's just very tired and make money. The money is like I do very good job, but my customer don't satisfy my work. Even I work very hard. So then I decided I kind of only know how to write code and I believe write code can make good profit, but the idea is wrong. So I figure out I didn't know about business. So I decided to sell my company to another Silicon Valley company to join their team as a VP of engineering. So I want to know how YC company will success. So I learned a lot business there and know how to build architecture with fast growing architecture with like business sense. So I quit the job again in 2005. This time I know how to build stuff. So I figure out the system, the framework, how to choose the topic, how to catch the strength. So finally in like last year, like I make like probably multiple million dollars, I guess. So I don't like a lumineer there, but actually if you, so that's why I want to share this to like other developer because I think developer deserve, they are the people who can change the world. Just they don't know about business. So I want to share my story so that everybody can be rich. So I think the first important thing the part one is you need to choosing a good topic. So this is my story in China. In 2016, I was like in China to build an online Rails coding camp. So Rails coding camp is like a very popular topic in States, but not in China. So at the 2016, the China kind of have the chance so like paying people to get the knowledge because they have very good WeChat and Alipay system. So people used to, and very used to, to pay people to learn stuff. So I think this is a very good opportunity. So I opened a coding camp online. I didn't think about I can, get so much students. My online coding camp is kind of 500 students at one batch. So it's kind of very crazy and we have two page. So in summary, kind of teach 1,000 students in only six months. So like this get me like 2 million USD dollars in profit. This is like two years ago. So after that, I started another business called ICO.info with my partner. I quit, so I closed this project is not because we like run out of students. It's because the crypto is rising in the China. So basically kind of I make too much money from the coding camp. Then I invested in crypto. Then when I invest in crypto, I put my money in my Bitcoin. Because I cannot wire money from China to Taiwan. Then suddenly put the Bitcoin become like 20 times. So I'm kind of what I'm doing. So I teaching code like looks, looks cannot make any profit to me at all. So I decided to build a ICO platform. So ICO is kind of ICO info in ICO info. We help 22 project raising over 200 million US dollars just in two months. Then because the money we raise is fucking crazy. So Chinese government shut down us. So a little quick explanation is what is ICO? ICO is very different from traditional we raise the money. Kind of when very in like several years ago, so people want to start their crypto project but they have no money. So people will invest in Bitcoin. But after the isn't been invent, people because isn't has the smart country function so it's very easy to build a crowd sale like on the internet. So people kind of tend to use internet to do replace the traditional the money raising way. And because the crypto like the trend rising, everyone become rich. They believe in ICO can make you like very profit can make a lot of money. So people are crazy about ICO in last year. So we see the business opportunity. So in last year, I figure out, so when I started a consultancy, I didn't know the business. Then I realized in last year, so the problem is you cannot make money. It's not your skill. The problem is you need to pick the right public. What is the right public? The first, you need to catch the rising trend. Two years ago is like in China is a rising trend about teaching people your knowledge. And the last year is ICO. So if you catching the right trend, you can make a lot. You can profitable just the size. And the second, it must to be monopoly. It means you must be the first one to come out of the product. Because if the second one comes out, it just cannot compete the first one because you need to convince people to move. And the third is your target market must be big like in states or like in China, the same language market. The biggest mix I make is I found my company first in Taiwan. Taiwan is a very small country, like 20 million countries and it was traditional language, traditional Chinese language. So our market size is very small. So no matter what, I work hard. So I cannot make money. But in China, it's different. In states, it's different. So you need to make sure your topic, your language, your trend is right. Then you can make something really impact. So after the ICO info by getting shut down, I have nothing to do. Because I kind of reach enough to... I can just travel for 20 years and without worrying about money. So I don't know what to do next. So I want to start something new to get me like more challenge and more from. So I think what is like, what can make more than Bitcoin. So I decide, I find, I figure out. So I need to build something that can make money from Bitcoin. So there are three options I can choose. The first one is crypto exchange, pure crypto. That means you use Bitcoin to buy Ethernet to other coins. The second is fiat to crypto, like Coinbase. You can use USD dollars to buy crypto. The third one is OTC change, like local bitcoins, the crypto version eBay. So I have three options I can do. Most people will choose crypto for crypto because they think crypto will make a lot of money. The other is probably 75% they will choose fiat to crypto because they think kind of legit. But real people will choose the OTC exchange because like OTC exchange, you need a lot of customers to prevent the fraud. It's a very slow efficiency. So make money that much less than other exchange. So I have three options I can do, but I choose OTC exchange. The reason I choose OTC exchange is I find out there are too many competitors in crypto chains. You open the coin market page, a website lists all the exchange on the wall. You'll find out it's already like 200 exchange, but actually there's probably 10,000 just not be listed by coin market page. So too many exchange in the wall. So I think there are too many competitors. So the one thing I learned about this, you need to be monopoly, not going to the market. There are everyone, every people in there. And the second choice I can pick is fiat exchange. But in most of the country, you need to get fiat exchange to fiat operating license in the country. But it takes a lot of money and a lot of time. So I think about all the options. So finally I choose the OTC because OTC right now most of coins, like big coins, crypto, being treat like virtual product in most of the country. So it comprises the current law. It's the thing I can do immediately. And by that time, like last three years in September, China shut down all the exchange in China government shut down all the exchange in China because they want to ban the entire ICO ecosystem. But there is a problem. After China shut down the exchange, nobody can convert their crypto back to fiat because right now no company will accept your fiat or crypto. So the only way is you trade with the messenger, the WeChat messenger is not safe. The other option is you trade with local bitcoin. But local bitcoin has been exist for like three or four years. The interface is very hard to use. So nobody in China will use this. So all our money been stuck on the crypto. So I want to solve my own problem. So I decided to build the exchange. Plus I see the trend. This is the local bitcoin trading volume. Like every week I think the fee, the fee on local bitcoin is 1%. So that's a lot of money. So I think probably I can build one. Like in China, probably I will make a lot of money. So this is the story why I chose OTC as my... This time stops topic. The part two is if you got the idea, you got the trend, you must execute in just one month. So OTC, BTC, we have the idea in September 22. We purchase the domain in the next time. Then we launch the product in the next month. So why I'm doing... What kind of driving crazy? Driving my team crazy. I keep asking him like we need to launch in next month. Because like Chinese people is like fucking crazy. If you do something right, they will copy you. Suddenly they will like 100 competitors. By the 10 competitors pops out. You kind of like... You just cannot play with them. So the crucial point is you need to be very fast. I heard a book called... They mentioned a theory called 10 times theory. If you want to make something really monopoly and very powerful, you can dominate the market. So your solution must be a very special time. It's kind of like a revolution time. So your product is better, your current solution is better the current one. It must be 10 times. So why it needs to be 10 times? It's because the current customer can see their old solution like three times better. And yourself seeing your product is three times better than current solution. So to become a truly very good product, you need to build your current solution looks 10 times better than current solution. Then when you first build this product, your competitor cannot beat you in 10 times. Because you already beat the old solution, then if you are a competitor, the second people want to do this, they need to be 10 times better. Otherwise, he cannot beat you. They will become 100 times harder. So the timing is very important. So that's why we built this product in such a rush time. So in my wandering, so what method I'm used to build the product so fast? It's like agile. But truth is not, we didn't use any scrum. We even don't write user story. So like we just kind of... So usually you build a product, you will write user story to describe what it must have or what it should have. Then you have prioritized it. But we didn't use it at all. So we just do like very simple way. So this is also the very important lesson I learned in these three years. You just need to build what it must have then drop everything else. Everything else is non-important. You just focus on what it must have. So in our case, most of the scenarios, you have like crypto wallet. You need a crypto wallet, then an advertising system. And our platform becomes an SQL agent. In order to make them have smooth communication, we built a trend. That is all it matters because the people hire you to do to build the SQL trading bridge. It's not some other else. So this is what I learned in another book called competing against luck. So written by Clayton Christian. The book is all about... He said, if you want truly innovation, so you didn't need to compete against luck. There's a framework in it. The whole book series, people use your product. If they hire you to complete a job, let's need to be done. It's not like fancy features. There's always a job. So revolution is already a job layer. You just replace it with innovation way. So people always misunderstanding like innovation. They think come up with a fancy idea. This is innovation. The truth is not. People just need the much efficient way to complete this job. So that's why I say... So that's why I just say so only built for must have. If you want to catch the trend, you want to get the market, you just only build what is must have. And you need to really focus. Because in this scenario, the user story, I am very good at HR and the user story, why I drop them all. And really focus is when your user story has too much character, your complexity will increase, will be exponential. And one more feature or like one more tab, you will get 10 times complexity. For example, like if our system has buyer, trader, administrator, customer support, the complexity will like exponential. And one more tokens, you probably like more tokens are more complex. And one more language, like if we want to support Chinese, English, Spanish, the complexity will also like we be triple something. So you don't need to build and all, you just build something to be done. So our step one is build a single-side market. What is single-side market is a built website that can make people can only sell BTC over. We didn't have like double-side, we just, you can only buy BTC, you even can sell BTC and also have like a simple chat loop and the simple Chinese only. When we already complete this, then we become like double-side market. So that will be much faster. You need to build the whole product, then build a future on top of it. Then the second phase is sell BTC. And the step three is support more currency, but this is later. So what product market being, it really means you need, people always misunderstood the product market fee. Most people think product market fee is try something new, then try the small ideas to think cannot fit the product. Actually not. You need to find a real problem, need to solve and the game get paid and the paycheck can feed your team. So that's why how I build this product. So this is kind of against everything I learned in the past of engineer careers. But this is what it takes, what I learned in the startup career. The past three is how we grow 20% every week. This is a trick for it. The first thing we do is we have like customer support on WeChat and Telegram. I personally answer every question, my customer question on the Telegram. And the second is we have intercom. We install intercom. Most engineers really, really hate to answer customer questions because they always think the customer is stupid. They are too stupid to use our product. But before like three years ago, probably I will think that, but after I joined YC's company, I learned customer feedback is very important because there's a peak like this. What is growth? People think growth is like one way to increase the conversion rate, but actually not. The growth is double the two directions. One is you increase the conversion rate. The second is that you reduce the tram rate. So when you in the startup stage, it's very hard to increase the conversion rate because first you have no resource during marketing. The only thing you can do is you reduce your tram rate. So how do we do that? So like the first is very good customer support. We usually respond our customer in less than five minutes. And second is you need to find out which customer is very important to you. On our website, there are two kind of character. One is the seller, the trader. They will sell Bitcoins. The second kind is like customer who purely buys the crypto. And the trader is much important than the buyer. So our effort is to protect the trader because if no one wants to sell Bitcoins, which they are rich? So if no one wants to sell Bitcoins, your website probably won't want to use. So we have this kind of policy. So we have our weekly goal. So we divide our goal. Because in the startup world, there are too many thousands you need to do. So we only focus one thing at each week. The first week is you need to build the trading volume. If no one wants to sell Bitcoin on the platform, your platform will just fail. The second is if the trader feels very inconvenienced, compared to the previous solution, they probably will also leave you. Then the third week is reduce customer plan. So the normal customer is less important than the trader. Then after everything is stable, then we got a very good user traction and customer feedback. And we get a lot of good NPS. Then we start a referral program. Then in the week five, reduce the fraud. We kind of like customer and onboarding oriented to build our product. So that means we don't have PM to control everything. We didn't plan ahead. We just build a master hat. Then stick the plan, stick with the customer, stick with the customer feedback to build our product. While I'm doing this is in the Silicon Valley, I used to learn growth hack from the Brian Balford, the previous VP of growth of Halftop. He showed aesthetics. I'm very stunned. He showed a picture about why customer left your platform. 30% is the customer don't know how to use your product. And 30% is when he comes in, he didn't feel the product very, so he left. It's very rarely technical fraud or other product is good. Then they left. They left most of because they don't understand how to use. Therefore they feel no value. So I'm very shocked by this rule because like in engineers' rules, we always think our competitor is far better than us. So we cannot compete. So the best way to solve is build more feature, but actually not. So most people when you want to reduce your trend rate, when you want to increase your conversion rate, the first and number one rule is make your product much understanding to make people understand how to use. So let's see a rule. So I invent a framework called Unboldened Framework. I think this is something very important in this whole talk. I break this into three stages. This is like copied from the human resource framework. So I break it into three stages. The one is before and the ongoing, the after. So you need to find why people don't want to use your product, why they hesitate, how they screw up at the first place. And ongoing, you need to find the best practice. Some people give you very good, very positive feedback, but some people say your product shit. So you need to find the best practice and provide it at the first time before they screw up. So make check point to see if people fail or just jump. Then after you set up a testimony or referral to build the viral loop. So we have like everything in Unboldened, kind of like we show Unboldened by Bitcoin Unboldened and like newbie Unboldened, kind of a lot of checklists are doing this. So kind of we can pre-interact. So most people, most people's product, they fail because they stop involved after its launch. And the most developer will complain about the customer just too stupid because they are not about to use our product. So I saw a lot of product died because of this. So when customer complains a lot, it's already too late to fix all of this. So why we, our product is better, a lot better than other companies. Honestly, in China, our OTC competitor probably like 100 OTC exchange. We are the first launch and the last standing. That's why we have this framework to pre-interact. So our progress always before every, our competitor almost before six months because we have this kind of framework pre-interact beforehand. So part five is viral growth. I have, I don't have much time. So I'm just quick about this is Kobe fun. We have referral program. So this is designed for like we chat. So kind of like Airbnb. We have like a similar system like Airbnb. So when we launch a referral program, we just wait, wait until our NPS is 70. You can Google NPS. What is NPS? We are well until our NPS score over 70. Then what our product become viral? This our statics in 60 days. And when we ICO, we use another ICO to also like make the volume up. So that's why can, why we can growth 30 times in six months. So right now OTC, BTC already like we launched already five months. We have a 200,000 user and 100 million Chinese dollar daily. And we have very good profit. And we are the largest OTC changing Asia. And we are the one and only exchange build it with rails in the world. So quick summary about this talk. The first please join us. We are short of hand because we are very, very lack of people to like help us to expand to worldwide. And when I am a developer, I always think developer speed is everything. Teamwork speed is everything. And prototype speed is everything. So I use a real strong user story. But when I entrepreneur, I think I find out what really important is topic and trend and customer and onboarding. Always you make your product easy to use and it's okay without PM. So either you growth or you die. Thank you.