A sharp sale in coinbase (coin) stock can be an overreaction of two pieces of bad news that hit the same day, according to analysts at Barclays and Oppenheimer.

Shares in Crypto Exchange fell 7.2% Thursday after it revealed a social engineering data violation and later reports revealed a long -term securities and exchange commission (SEC) survey of whether the company exaggerated uses in its 2021 preliminary public offer (IPO) archiving. The intradag of the stock -dip reached almost 9%before he got a little.

Read more: Coinbase could pay customers up to $ 400 million. For data violation

Barclays said the market is likely to be pricing at too high risk and calls the reaction “something excessive.” The company emphasized that Cyberattack came from cutlined customer support agents rather than a failure of blockchain security.

According to Coinbase’s blog posts, a group of overseas agents were paid to leak customer data, including names, addresses and masked social security numbers that scammers then used to convince users to send crypto assets.

Coinbase refused to pay a $ 20 million ransom that the hackers demanded. Instead, it has promised to prove the affected customers and work with law enforcement. Less than 1% of transaction users were affected and there was no access to passwords, private keys or customer funds.

Read more: SEC is investigating Coinbase of Malformation of User Number

Oppenheimer repeated Barclays’ view and wrote that although the violation harms the company’s reputation, it seems to be isolated and not signs of wider systemic risk. Coinbase estimates that it will spend between $ 180 million and $ 400 million to cover customer losses, legal expenses and a new bounty program aimed at catching the perpetrators.

As for the SEC probe, it concerns the 100 million “verified users” numbers in Coinbase’s S-1-archiving during its IPO from 2021. Coinbase stopped reporting this metric over two years ago and analysts believe the study is underway since the Biden administration.

Paul Grewal, Coinbase’s head of legal officer, said the probe should not be extended and that it does not relate to the company’s current performance.

The double dose of bad news comes just days after the Coinbase stock rose on news that it would be added to the S&P 500, which may have made the shares vulnerable to a withdrawal.

In a note to clients, Barclays pointed out that investors may not only respond to the news, but to the rapid increase in the stock in recent days. Oppenheimer called the current weakness of the share price “A Purchase Option” and confirmed its better classification.

If anything, the episode emphasizes that the thin line creeping companies go between technological robustness and human vulnerability. And while the fallout may prove to be manageable, Coinbase’s response – and market memory – will shape how long the shadow of this violation lasts.

Mark Palmer, Analyst at Benchmark, also neglected the long -term significance of the violation and characterized it as a targeted one -time event rather than proof of deeper safety errors. He pointed out that attackers gained access through bribery customer support contractors rather than through Coinbas’s core systems, which remained intact. No passwords, private keys or customer funds were compromised.

Palms also rejected SEC’s study of Coinbase’s previous user metrics as “a little more than noise”, noting that it related to a metric, the company stopped reporting over two years ago.

Despite the heading risk, he confirmed his bullish prospects and raised his price target at Coinbase to $ 301 from $ 252 and emphasized the company’s potential to take advantage of growing institutional adoption as legislative clarity improved.

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