Barclays, Market reaction excessive to SEC's Coinbase investigation…Could be a buying opportunity

According to Coindesk, investment bank Barclays analyzed that the market reaction was "excessive" after the stock price declined more than 7% following the U.S. Securities and Exchange Commission (SEC)'s investigation of Coinbase.

The SEC announced that it is investigating whether Coinbase exaggerated user numbers prior to its 2021 IPO (Initial Public Offering), and this news sent Coinbase’s stock plummeting.

In response, Barclays assessed that "market participants seem to have overestimated the risks of this investigation," and that the current stock decline could actually be a buying opportunity.

Investment experts are viewing buys during the adjustment phase positively, stating that the SEC investigation could have a limited impact on long-term corporate value.