(CoinDesk) JPMorgan has cut the price target of crypto exchange Coinbase to $68 from $171. The strategists also gave a neutral from overweight rating.
The banking strategists believe that Coinbase will face a challenge earning a profit in the near term amid declining crypto prices.
JPMorgan says trading volumes on Coinbase are down at least 30% in the second quarter, adding to the decline of 40% in the first quarter.
The strategists believe that Coinbase’s trading activity in May was overtaken by FTX and June.
The slashed target comes even as Coinbase said it would cut 18% of staff given the harsh macroeconomic environment. JPMorgan believes that cost-cutting is not the end in itself in solving Coinbase’s woes.
Coinbase admitted that it is looking at another crypto winter, which could last for a longer period, which prompted the staff cuts.
Coinbase’s move happened days after rival Crypto.com also announced plans to let go of 260 workers, or 5% of its staff.
COIN: NASDAQ is down -5.02%.
