Morgan Stanley Slashes Coinbase Price Target by 50% as Trading Slows, Binance Hack Fallout Hits Crypto Exchange

Morgan Stanley has cut its price target on Coinbase Global by 50%, citing slowing trading activity and the broader fallout from the recent Binance hack. The downgrade comes as the cryptocurrency exchange faces a deepening post-earnings rout, with revenue prospects clouded by reduced user engagement and market uncertainty. The bank’s analysts pointed to a sharp decline in trading volumes across the crypto sector, which directly impacts Coinbase’s transaction-based revenue model. The Binance security breach, which saw hackers drain millions in digital assets, has further shaken investor confidence in centralized exchanges, adding pressure on Coinbase’s stock. This move by a major Wall Street firm underscores growing concerns about the sustainability of Coinbase’s growth amid a crypto winter and intensifying regulatory scrutiny. For investors, the revised outlook signals a more cautious stance on the company’s near-term earnings potential. As the crypto market navigates this turbulent period, Coinbase’s ability to diversify revenue streams and restore trust will be critical in determining its long-term trajectory.