Coinbase’s buying and selling income to see ‘minimal potential upside’ from FTX fallout: Barclays

Barclays analyst Benjamin Budish is anticipating cryptocurrency alternate Coinbase International’s (NASDAQ:COIN) buying and selling income to see “minimal potential upside” from the implosion of rival FTX, he wrote in a observe to purchasers Tuesday.

Budish particularly referred to as for an extra low- to mid-single digit development to Coinbase’s (COIN) buying and selling income as FTX’s multi-billion greenback collapse opens the door for different massive centralized exchanges to take (retail) market share.

That potential upside can be as a result of “geographic overlap between the 2 firms, our seize assumptions, and early reads on the place funds from FTX had been flowing,” the analyst defined, noting that his evaluation was based mostly on an assumed seize of FTX’s volumes previous to its suspension of buyer withdrawals.

Coinbase (COIN), in the meantime, has already struggled with a pointy deceleration in buying and selling quantity previously yr given a broader crypto bear market and worsening macroeconomic circumstances. Buying and selling quantity for Q3 was $159B vs. $217B in Q2 and $327B in Q3 of final yr.

On a broader observe, because the Brian Armstrong-led alternate sees an increase in curiosity earnings together with value cuts over the subsequent yr, “we expect insolvency fears (as are at present mirrored in bond costs) are overblown,” Budish contended.

Earlier this week, (Nov. 21) famed brief vendor Jim Chanos stated Coinbase has a enterprise mannequin downside — it does not work.