Has it achieved? However, we cannot create active notes to sustainably invite new users. I believe that is the most important thing. We achieved some numbers, but we didn't acquire new users in an effective way. From this experience, especially from Q3, I'm thinking of shifting the strategy from that.
Whitelisting Care Web number 2, the high-density communication with the VIPs—why do we gross the QL load, but can't acquire new users in an efficient, effective way? Why does it happen? Is the QL wrong? I don't know what the key point of the problem is. In the second quarter, we focused on partnering with a lot of care walls, so we didn't highly care about their quality itself. Of course, we had some conditions—the partners needed to have more than 3,000 followers or own their own community. But it's not effective to figure out core details.
Actually, the biggest problem in Japan is that we've already reached out to almost all the crypto natives. Due to the market condition, so many crypto traders, including crypto whales, left the industry and started trading in the Japanese stock market or the US stock market. Due to this situation, I believe we need to switch—within the crypto industry, we should focus on core users. We also need to try reaching out to other regions like US stock market traders, traders from community members, and Japanese overseas travelers.
OK. Yes, two focuses: the crypto core VIPs for trading volume, and new users from travelers and other stock markets. I think there's some misunderstanding about the Q2 strategy. We are not just caring about the rumble; we care about whether we can open the market. In the past 12 months, the DAU were ten in Japan—it's not growing. We need to open the market. We want to use new loads to open the market. We don't just care about the rainbow; the quality is very important, but we need to open the roads. If we only touch three or five VIPs, we can't grow. I think that's important.
Have we found the PMF in Japan, across all our product features? Which ones do Japanese users actually use and find valuable as meaningful, better than our other learnings? In the crypto industry, we found PMF in the Payfac card. Payfac card has PMF. I think Japanese people both have credit cards—it's a developed country. The traditional financial card is very easy to use. Yes. I don't think the card has the PMF in Japan.
OK, I got your point. From that perspective, in Q1, there was a spike or boom of meme trading. That could be one example of the PMF for Japanese web2 investors. They can enjoy the high variety and actually enjoy trading. But after the Japanese mini-boom, they left this market, mostly due to regulations. There was an incident about the Sina token, and after that, Japanese FSA posted stricter regulations for main coin issues. So, I believe we need to find another channel to get real users.
I think our product is very seamless and very good for use, but we don't have a feature that only we have and other wallets don't have. We don't have this feature to get new users. We've been building our part-time BD network in Japan to expand the channels. I think it's very important. We use the CRM and can build a strong BD network to touch the users.
How much real user growth or business have they driven? Is the model working, and if not, where is it breaking down? As far as I know, previously we used a CLM and AI tool to aggregate new targets in this industry, but due to a functional upper limit, we passed on this strategy. Currently, we're relying on manual hunting—care well hunting right now. In my opinion, we should hire new care wells from other regions. For example, we can hire a part-timer from some university, or from stock market investors. By doing it, we can get high quality influence, at least through their experience.
In fact, we want to build a very strong channel. Do you know? We want to have like 5,000 KOLs in our CM system. When we have some product to promote, we can find the right people to promote our product and improve our visibility in a KOL promotion campaign. If we only have two BDs, or three, or ten KOLs, the number is not growing quickly. Our users can't grow quickly, so it's not about the rumble—it's about the network. Did we build a very strong network to help us grow? It's the important thing, I think.
If we only talk about the rumble, we don't care about the quality or how to connect to the network. We won't have growth easily. In the past six months, our users in Japan are not growing. It's a problem. In our product, we don't have so many differences from our competitors. The web3 wallet has the same features. We have a little difference, but not so much. It's very hard to get users through natural, organic growth. We need to build strong channels to reach our users and tell them which features we have. It's a very hard method to grow, but I think it's the only way we can really grow.
I see your document. You said you want to focus on VIP QL. I think it's very hard to grow for VIP QL, because in other regions we find we can't reach the VIP users—we don't know why they use us. For example, for trading fees, ours are higher than something like Hyper Liquid or Bigget Exchange—because the product is structured as an aggregator, so our fee is higher than Hyperledger, since we need to get some revenue. VIPs don't want to use bigger wallets for trading. In our strategy, we want to build the network and grow the normal users, then some of them can become VIP users, but we don't know who.
In PABs trading, every day we have 1,000 users trading our PABs, and maybe one percent—ten or twenty users—have a lot of money in the PABs, trading fifty percent of the volume. But we can't touch them. They don't care about anything like cashback. We give, but they don't care. We should focus on growing the 1,000 users to 2,000 users. Maybe when we have 3,000 users every day trading our PABs, there will be 30 or 60 trading at very high volume. We can't touch them directly, in fact. They have so much money, they don't care about cashback or anything else.
We need to focus on the normal users and normal channels. If we have many normal users, maybe one or two percent will become high volume users. In that case, we have a strong point in the Japanese market. These days, so many global CXs left the Japanese market due to strict regulations. We could be the only option to trade crypto for some users. By acquiring awareness and reaching out to more ordinary users, I believe there will be a possibility to be number one crypto trading tool in the Japanese market.
To do so, we need more part-time power to communicate with a lot of people. Maybe one million users use web3 in Japan, but we only touch 10,000. Most users we don't touch. I think opening the market and the channel is the most important thing. They don't know what Becca wallet is, they've never heard of it, and don't know it has features like PABs, RWA stocks, or that you can trade MIMAs or have 5-6% APY earn products. We have a very small market share. Opening the market is the first important thing.
From the critical information, it is said there are 14 million Japanese CX exploring accounts. Actually, we haven't reached them—maybe less than one million. The market is very big. We don't touch them, they don't know us, we don't have any connection with them. We need to have some point to promote to touch them. It's very important.
Got it. Actually, our target—no, our competitors—should be Japanese CX. We don't really care about how many QLs. The Lamborghini is only a symbol to help us understand what we do, but in fact, we need to open the market, we need to connect with real users. It's the only important thing. We build the CRM system to help manage a big BD team to reach them. Maybe you can have some test and change the strategy, but you can get some insights on how to reach real users. Give us some suggestions—should we offer cashback or something else? That's OK, but we need to open the market; it's the only important thing, not just focus on VIP users. I think that's the wrong strategy.
The VIP users—we don't have any hook to get them in. We can give them money, but they already have so much. They have many choices. The big volume users will grow organically when normal users become the big ones. Maybe one or two percent—if we have one million normal users, maybe we have 100, 200, or 300 VIP users, the big whale users.
I see. So, I will modify the Japanese growth strategy and aggregate more insight on how Japanese CX attracts new users and how we can compete. I believe that even with our fee structure, we can't beat Japanese CX in some areas like fee rate or liquidity.
I think our team needs to dive into the real group, the real network. What do they care about? If we have any problem getting them in, we can improve it. You can give insights and user demands, and we can improve. It's not easy, but it's the only way we can grow.
Who are the main competitors in Japan now for us? Which product? For meme coin trading or RWA, who is the main competitor? In terms of wallet companies, maybe Spot Wallet would be the biggest one. Hash Port Wallet is a domestic wallet for Japanese people.
OK, it's a Japanese company. Yes. Maybe later you can text me in Slack. OK. What's the difference? Do they have any different or useful features? Hotspot Wallet is not so sophisticated—they don't have so many chains. We are better. But their strong point is they have strong channels with Japanese FSA and JPIC, and they have a lot of user base. They got many registrations when we had a big global pavilion in Japan. At that time, Hotspot Wallet was not rebranded yet—they used to be Bump Card Wallet.
Around 1 million Japanese users registered that wallet to join the event. After that, they changed their brand name to Hotspot wallet. There are so many users who downloaded that wallet, but real users are really limited. High quality partnership with Japanese national companies—got it. Maybe you can think about it and write a document about how to open our market, reach the real users, and build strong KOL and KOC channels.
I know the market is very cold right now, but I think maybe it's a very good time for growth. When the market is tough and the competitors are strong, KOLs can get a lot of promotional money, and they don't want to work with us. But now, we can build the network and keep the connection. Maybe, if we have some promotional budget, we can use it to connect with them. I think it's a good time to do this.
You know the pubs, right? We have the pubs, and the bigger exchanges closed their Japanese operations. Can we transfer users to a bigger wallet? Do you think we have a chance to do this? Do you mean we can get users from them? I think so, because we already have a task force to do it, and we communicate with the Bitget Japan team. You already shared some VIPs, so we can get users from the CX.
Do you have any suggestions for me to help you improve your work? Thank you for asking. After this discussion, my way of thinking has changed completely. I will think deeply about the true strategy.
Both our English is not very good, but I think we can understand each other. I can understand what you said, and I hope you can understand my thoughts. I just want to be understood. You can text me directly anytime, in Japanese or English—both are OK. Thank you.
I read your document and I think it is very clear, but I have a different direction about it. I think the VIP users are hard to impact. Thank you for the feedback. OK, bye. Have a good day. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.
