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Technology
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Is this a surprise? User retention is hard, and I'd expect this to hit even harder as time goes by. It'll keep going up until the point where user growth matches attrition and I'd guess in the early days of a social platform, it's going to take a while for background growth to increase that much and attrition will be pretty high given the lack of attachment.
It's also worth mentioning that on launch day, people in Europe were able to access it via VPN (not sure how big of a number of users that was), but they've since blocked those users. I'm sure that's not a massive chunk, but it's a chunk nonetheless
How do you block people using a VPN by region? Just block the whole VPN?
They collect all kinds of data, and it's tied to users Instagram account. There are tons of data that could indicate given users geographical location without IP (gps, phone service provider, credit card uses, user profile, etc.)