Coinbase’s reaction (exaggerated “penetration, analysts in Barclays and Wofheimer thinks

A sharp sale in Coinbase (currency) may be an exaggerated reaction to two pieces of bad news that was struck on the same day, according to analysts in Barclays and Ovenheimer.

Crypto Exchange shares decreased by 7.2 % on Thursday It revealed a breach of data based on social engineering And then Reports revealed Achieving the long -term securities and stock exchange committee is whether the company is exaggerated in the numbers of users in submitting the year 2021 (IPO). The decline in the stock inside the day reached about 9 % before recovering a little.

Read more: Coinbase can pay customers to up to 400 million dollars to violate the data

Barclays said the market is likely to hear a lot of risks, describing the reaction as “somewhat exaggerated.” The company confirmed that the electronic attack stems from customer support agents who were sprayed instead of failure in Blockchain.

According to the publication of the Coinbase Blog, a group of foreign agents was paid to leak customer data, including names, addresses, and convincing social security numbers, which the fraudsters then used to persuade users to send encryption assets.

Coinbase refused to pay a $ 20 million ransom that the infiltrators requested. Instead, I pledged to pay the affected customers and work with the application of the law. Less than 1 % of transactions users are affected, and no special passwords, or customer boxes have not been accessed.

Read more: SEC is investigating Coinbase on the interest of the user number error

Obenheimer has repeated Barclays’s view, as he wrote that although the violation is harmful to the company’s reputation, it appears to be isolated and not an indication of the broader regular risks. Coinbase is estimated that it will spend between $ 180 million and 400 million dollars to cover customer losses, legal expenses and a new reward program aimed at hunting the perpetrators.

For a SEC probe, it relates to the personality of “Investigators” with 100 million people in the Coinbase S-1 file during the 2021 subscription.

Paul Ghrouwal, the chief legal official of Coinbase, said that the investigation should not be prolonged, and that it is not related to the current performance of the company.

The double dose comes from bad news a few days after the stocks rise in the news that will add it to the S&P 500, which may have made the shares vulnerable to withdrawal.

In a note of customers, Barclays pointed out that investors may interact not only with the same news, but to the rapid rise in stocks in recent days. Obenheimer’s description of the current weakness in the stock price “opportunity to buy” and reaffirmed its superior classification.

If there is anything, the episode confirms that the delicate encryption companies are walking between technological durability and human weakness. Although the repercussions may be managed, Coinbase’s response – and market memory – will be the time that this breach takes.

Mark Palmer, an analyst at Benchmark, also reduced the importance of the long -term breach, describing it as a one -time targeting incident instead of evidence of deeper security defects. He pointed out that the attackers were able to reach through the customer support contractors instead of Coinbase’s basic systems, which remained intact. Passwords, special keys or customer boxes have not been hacked.

Palmer also refused to achieve SEC in the pre -used standards of Coinbase as “more than noise”, noting that it is related to a scale that the company stopped reporting more than two years ago.

Despite the main risks, he reaffirmed his bullish outlook, raising its target price on the currency base to $ 301 from $ 252 and emphasizing the company’s capabilities to benefit from the increasing adoption of institutions with the improvement of organizational clarity.

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