Coinbase Metric Diagnosis: Finding Why Daily Active Users Fell 10%

Coinbase's daily active users (DAU) have fallen by 10%. As the product manager, walk through how you would work out why. ```hint Order the checks Confirm the number is real first, then find where the drop is concentrated. For a trading app, keep causes outside the product on the list alongside releases and outages. ``` ### Clarifying Questions - How is a daily active user counted here: any signed-in visit to the app or website, or only users who buy, sell or move funds? Are the advanced trading product and the separate wallet app included? - Is the 10% measured against the previous day, the same weekday last week, a longer average or last year, and did it appear suddenly or over several weeks? - Is the drop spread evenly across platforms and countries, or concentrated somewhere? - What did crypto prices and trading volumes do over the same period? ### What a Strong Answer Covers - Validation of the data and the DAU definition before any diagnosis - The drop's size, timing and shape against a sensible baseline - Segmentation that locates the drop and how much of it each segment explains - Hypotheses that separate external drivers specific to crypto from internal product causes, each with the data that would confirm or rule it out, checked in a deliberate order - Next steps once a cause is found, including how recovery is measured and who is kept informed ### Follow-up Questions - The drop lines up with a fall in crypto prices, and comparable apps saw the same. Is there anything for the product team to do? - Nearly all of the drop is in one country where new crypto rules are being debated. What do you do next? - How would you change Coinbase's engagement metric so it reflects product health rather than market swings?