Coinbase's trading revenue to see 'minimal potential upside' from FTX fallout: Barclays

Barclays analyst Benjamin Budish is expecting cryptocurrency exchange Coinbase Global's ( NASDAQ: COIN ) trading revenue to see "minimal potential upside" from the implosion of rival FTX, he wrote in a note to clients Tuesday. Budish specifically called for an additional low- to mid-single digit growth to Coinbase's ( COIN ) trading revenue as FTX's multi-billion dollar collapse opens the door for other large centralized exchanges to take (retail) market share. That potential upside would be due to the "geographic overlap between the two companies, our capture assumptions, and early reads on where funds from FTX were flowing," the analyst explained, noting that his analysis was based on an assumed capture of FTX's volumes prior to its suspension of customer withdrawals. Coinbase ( COIN ), meanwhile, has already struggled with a sharp deceleration in trading volume in the past year given a broader crypto bear market and worsening macroeconomic conditions. Trading volume for Q3 was $159B vs. $217B in Q2 and $327B in Q3 of last year. Overall, as the Brian Armstrong-led exchange sees a rise in interest income along with cost cuts over the next year, "we think insolvency fears (as are currently reflected in bond prices) are overblown," Budish contended. Earlier this week, (Nov. 21) famed short seller Jim Chanos said Coinbase has a business model problem -- it doesn't work.