Compass Point reiterates its bearish rating on Coinbase, with a target price of $140

According to Decrypt, Compass Point analysts reiterated their bearish rating on Coinbase, with a target price of $140, and warned that competition in the derivatives sector could affect its profitability. Analysts mentioned that although Coinbase has obtained regulatory permission to offer offshore crypto perpetual contracts to US users through its subsidiary Deribit, the potential entry of Kalshi and Binance increases the risk. The fierce competition and low user conversion costs limit Coinbase's pricing power among high net worth users.