Nigerian Crypto Startups Shift Focus Beyond Retail Trading

Nigerian crypto startups have traditionally focused on facilitating the buying and selling of digital currencies for retail customers. However, this business model has become increasingly challenging due to intense competition and margin compression.

According to industry insiders, the unit economics of running a crypto retail trading business reveal that gross revenue per transaction is relatively low, ranging from $0.30 to under $1.40. Additionally, customer acquisition costs are high, with some startups spending up to $22,000 to acquire a single customer.

As a result, many Nigerian crypto startups are now expanding their product offerings beyond retail trading. They are introducing new products such as stablecoins, futures, and dollar virtual cards, which can help reduce reliance on volatile retail trading and provide a more consistent revenue stream.