Binance's $925 User Valuation in Question as Lawsuit Targets RedotPay
Binance's $925 per-user valuation of its customers is at the center of a contentious lawsuit against RedotPay, which could impact the US IPO of the latter and set a precedent for valuing crypto users.
The figure was arrived at by multiplying the number of diverted users, approximately 470,000, by the lifetime value of each user. However, critics argue that this valuation is 'incredibly high' compared to traditional fintech companies.
Ryan De Souza, an APAC partnerships lead at Offchain Labs, analyzed Binance's figure and found it to be close to Coinbase's revenue per monthly transacting user, which reached $81.67 in Q1 2025. However, he also notes that Coinbase's economics have since softened with the market.
The debate surrounding the valuation of crypto users has implications for exchanges' customer acquisition strategies and their push into cards, savings, and lending to maintain relationships beyond market cycles.