JPMorgan Bullish on Coinbase Despite Concerns Over Margins and Regulations

JPMorgan analysts are very bullish on Coinbase, setting a $300 price target due to growth opportunities in exchanges, custody, and blockchain services.

However, Coinbase's exchange business has low, shrinking margins and its blockchain ambitions face regulatory threats that could limit near-term opportunities.

Coinbase's new offshore derivatives platform is scaling rapidly and could boost upcoming earnings reports as traders make highly leveraged bets.

The crypto market's cycles of boom and bust mean the current good times are unlikely to be as rosy as they appear.

Coinbase CEO Brian Armstrong is demonstrating more focus by avoiding controversy, letting the company's products shine, and cautioning against irrational exuberance.