According to Barclays and Oppenheimer analysts.
The actions of the Crypto Exchange fell 7.2% on Thursday after having disclosed a violation of data from social engineering and subsequent reports have revealed a long -standing survey of the securities and exchange commission (SEC) to find out if the company has overestimated the number of users in its initial public supply of 2021. The intra -day decrease of action reached almost 9% before recovering.
Read more: Coinbase could pay customers up to $ 400 million for data violation
Barclays said the market is probably too many prices, calling for the “somewhat exaggerated” reaction. The company pointed out that the cyber attack came from sudden customer support agents rather than a blockchain security failure.
According to Coinbase’s blog, a group of foreign agents has been paid to disclose customer data, including names, addresses and masked social security numbers, which crooks then used to convince users to send cryptographic assets.
Coinbase refused to pay a ransom of $ 20 million requested by the pirates. Instead, he undertook to reimburse the customers affected and works with the police. Less than 1% of transaction users have been assigned and no password, private keys or customer funds have been directly accessible.
Read more: sec Coinbase probe on the concern of user number anomalies
Oppenheimer echoes the vision of Barclays, writing that if the violation damages the company’s reputation, it seems isolated and not indicative of a broader systemic risk. Coinbase estimates that it will spend between $ 180 million and $ 400 million to cover customer losses, legal spending and a new premium program to catch the authors.
As for the dry probe, it concerns the figure of 100 million “verified users” in the S-1 file of Coinbase during its IPO 2021. Coinbase ceased to report this metric more than two years ago, and analysts believe that the survey has been underway since the Biden administration.
Paul Grewal, the legal director of Coinbase, said that the investigation should not be extended and that it does not relate to the current performance of the company.
The double dose of bad news occurs only a few days after the Coinbase stock jumped on the news that it would be added to the S&P 500, which could have returned the actions vulnerable to a decline.
In a note to customers, Barclays stressed that investors can react not only to the news itself, but to the rapid increase in stock in recent days. Oppenheimer described the current weakness of the course of action “an opportunity to buy” and reaffirmed his outperformance note.
If anything, the episode highlights the cryptographic companies of the thin line between technological robustness and human vulnerability. And although the repercussions can prove to be manageable, the response of Coinbase – and the memory of the market – will shape the duration of the shadow of this violation.
Mark Palmer, analyst at Benchmark, also minimized the long -term meaning of the violation, characterizing it as a targeted and punctual incident rather than proof of deeper security defects. He pointed out that the attackers had access through welding customer support entrepreneurs rather than via the main coinbase systems, which remained intact. No password, private keys or customer funds have been compromised.
Palmer also rejected the SEC investigation into the metrics of Coinbase users as “a little more than noise”, noting that it relates to a metric that the company has stopped reporting more than two years ago.
Despite the risk of title, he reaffirmed his upward prospects, increasing his price for Coinbase at $ 301, against $ 252 and emphasizing the potential of the company to benefit from an increasing institutional adoption as regulatory clarity improves.
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