The recent breach of the crypto trading platform Bybit underscores the importance of self-custody wallets, as noted in a report released by a brokerage on Wednesday that initiated coverage of Exodus Movement (EXOD).
This brokerage has assigned a buy rating and established a price target of $38 for the crypto wallet company. Following this announcement, the stock saw a 5.7% increase, reaching $25.89 during early trading.
According to analyst Mark Palmer, the Nebraska-based firm offers the “right product at the right time.”
The necessity for self-custody was emphasized recently after Bybit experienced a hack involving 400,000 ether (ETH), approximated to be worth around $1.5 billion.
Over the past five weeks, Exodus Movement has seen its market capitalization diminish by more than 60%, presenting an attractive opportunity for investors interested in a firm that exhibits “strong operational dynamics, proven scalability, and beneficial conditions in the U.S. crypto market,” the report mentioned.
The stock’s recent downturn is not attributed to any operational concerns, as the company recently announced solid fourth-quarter figures.
Benchmark indicated that a significant portion of Exodus Movement’s revenue derives from its exchange aggregation feature, while its “wallet-as-a-service” offering utilizes this technology within its crypto swap engine, which integrates with platforms like Ledger and Magic Eden.
The company’s stock began trading on the NYSE American, a sister market of the New York Stock Exchange, in December of the previous year.
Read more: SEC Approves Crypto Wallet Maker Exodus to List on NYSE American After Denying It in May