Should Kraken prioritize adding more cryptocurrencies or improving existing trading features?

Introduction

The trade-off between adding more cryptocurrencies or improving existing trading features on Kraken is a critical decision that will shape the platform's future. This scenario involves balancing user acquisition through a broader offering versus enhancing the experience for existing users. I'll analyze this trade-off by examining the product context, potential impacts, and data-driven decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Kraken's current market position. Could you share how we're performing relative to competitors in terms of trading volume and user base?

Why it matters: Helps gauge our competitive stance and growth needs Expected answer: Middle-tier exchange with room for growth Impact: If lagging, might lean towards expansion; if leading, focus on retention

• Business Context: Based on our revenue model, I assume transaction fees are a primary driver. How significant is the contribution from new coin listings versus trading volume on existing pairs?

Why it matters: Aligns decision with revenue priorities Expected answer: Existing pairs generate majority of revenue Impact: Higher existing pair revenue would favor improving trading features

• User Impact: Considering our user segments, what's the split between professional traders and retail investors?

Why it matters: Different segments have varying needs and priorities Expected answer: Mix of both, with growing retail segment Impact: Higher retail percentage might favor adding coins for diversity

• Technical: Regarding our platform architecture, how scalable is our system for adding new cryptocurrencies versus implementing advanced trading features?

Why it matters: Assesses feasibility and resource requirements Expected answer: Both are feasible but have different complexity levels Impact: Lower scalability for one option could influence the decision

• Resource: Looking at our current team structure, do we have more capacity in our listing team or our trading feature development team?

Why it matters: Aligns decision with current capabilities Expected answer: Balanced, but listing team slightly more available Impact: Could lean towards the option with more readily available resources