In brief
- Compass Point analysts reiterated a bearish $140 price target for Coinbase, warning of fierce competition in the derivatives space.
- While Coinbase secured regulatory relief to offer offshore perpetual futures via its Deribit subsidiary, Kalshi and Binance’s potential heightens risks.
- Despite pulling in $50 million in first-quarter revenue from perpetual futures, Compass Point flagged signs of cannibalization.
Coinbase faces an uphill battle when it comes to derivatives as customers enjoy a growing number of ways to trade perpetual futures, according to analysts at Compass Point.
Amid depressed market conditions and competitors eyeing increased market share, Coinbase’s efforts to let customers speculate on digital assets…
