Coinbase Cuts ~700 Employees

Olivia Capozzalo & Camila Russo
May 05, 2026

gm, Defiers!

Today’s big story:

Every crypto CEO laying off staff in 2026 is citing AI. Analysts say it's the bear market. The uncomfortable truth: both are right.

In other news:

Drift publishes recovery plan
Toncoin rallies as Telegram becomes TON validator
Securitize taps Jump, Jupiter for regulated on-chain stock trading
SODAX Bets DeFi's Next Users are AI Agents, Not People [SPONSORED]
Figure’s Crypto-Backed Loans Are Redefining How Investors Unlock Liquidity [SPONSORED]

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The interface layer for AI-driven DeFi is already up.

Most DeFi infrastructure was built assuming a human is at the keyboard, reading slippage, selecting networks, signing transactions. AI agents skip all of it. They state goals and execute. The problem is the infrastructure wasn't designed for that handoff.

SODAX is. A live MCP server gives any compatible agent direct access to cross-network execution across 18+ networks. No per-network integration, no bridge logic. Amped Finance is already running production agents on the stack via Openclaw, managing yield and rebalancing capital without a human signing each transaction. The SDK will allow LLMs to read and integrate the full SODAX surface without manual hand-holding.

The agent era is already here. Find us at Consensus 2026 and at our Miami Heat: Cocktails & Connections event on May 5.

Ship now

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Crypto Layoffs: AI Scapegoat or Real Reckoning?

Coinbase became the latest crypto firm to announce major staff cuts on Tuesday, slashing 14% of its workforce — roughly 700 employees — and joining a growing list of digital asset companies trimming headcount in 2026. CEO Brian Armstrong pinned the decision on two now-familiar drivers: a tough crypto market and the company's pivot to an "AI-native" operating model.

The announcement caps a busy stretch. In February, Gemini began trimming positions, eventually cutting roughly 30% of staff by mid-March. Algorand followed with a 25% reduction late in March, citing macro conditions. Crypto.com axed 12% of its team the same month, with CEO Kris Marszalek warning that companies failing to integrate AI quickly will be "left behind." Smaller firms, like OP Labs, Messari, and PIP Labs, joined the wave with their own cuts. Block, Jack Dorsey's payments and crypto venture, made the deepest reductions of all.

The Easy Excuse

The convenient narrative that AI is gobbling up jobs has its skeptics. Mizuho analyst Dan Dolev told Bloomberg that the crypto winter is "probably the real reason for most of the cuts" and AI is just "an easy excuse."

Both things can be true at once.

AI Models Are Doing Real Work

To pretend AI isn't reshaping how crypto companies build, ship, and support products would be covering the sun with a thumb. Engineering teams are genuinely shipping faster with AI assistants. Customer support is now run by AI agents. Documentation, code review, marketing copy, internal tooling, legal docs. Almost every part of a business is being rebuilt with models that didn't exist eighteen months ago.

Coinbase said it's restructuring around "player-coaches" and experimenting with "one-person teams" that fold engineering, design, and product into single roles.

At the same time, Coinbase's revenue dropped 26%, and trading volumes hit an 18-month low. We almost certainly wouldn't be seeing this scale of layoffs in a bull run, AI or no AI.

Still Mild Compared to 2022

The bad news: this could get worse before it gets better. The crypto winter of 2022–2023 was of a different order of magnitude. CoinDesk's running count tracked job losses across the industry as the FTX collapse cascaded through balance sheets, and Fortune reported that crypto firms shed more than 2,000 jobs in just the first two months of 2023 — with Coinbase alone cutting another 950 roles in January after its 18% reduction in mid-2022. Crypto.com, Kraken, and Gemini all made repeat rounds during that stretch.

Compared to that, 2026's tracked total — somewhere north of 1,200 crypto-specific cuts so far — looks modest. That tally pulls together Coinbase's ~700, Crypto.com's ~180, Gemini's ~200, Algorand's 25% reduction, and the smaller rounds at OP Labs, Messari, and PIP Labs — and it's only the first five months of the year.

But cycles tend to extend, and if the market doesn't turn, more rounds are likely. Crypto hiring is already running about 80% below last year's pace, and broader tech-sector layoffs have already topped 73,000 across the first four months of 2026 — on pace to blow past 2025's full-year total of 124,000.

Two Sides of the Table

The good news depends on which side of the table you're on. For business owners, the math is improving fast. Smaller teams are shipping more code, closing more tickets, and producing more content than larger teams could a year ago. Margins are being rebuilt around productivity gains that aren't going away when prices recover.

For workers, the picture is murkier. Skill demand is shifting in real time, and many people are being asked to retrain mid-career — to manage AI agents, to specialize harder, or to take on broader scopes once split across multiple roles. That's painful. But the flip side is just as real: the barrier to building, shipping, and creating has never been lower. A single developer with the right tools can now spin up products that took entire teams a few years ago. The same forces squeezing existing jobs are opening doors for whoever moves first.

With love,

Cami, founder of The Defiant

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The $300M DeFi Bailout: Heroic or Unsustainable?

Was DeFi United a bailout or just voluntary market coordination? The Defiant's Camila Russo is joined by Dean Eigenmann (Markets Inc.), binji (Ethereum Foundation), and David Phelps (Confetti) to debate whether crypto bailouts are good for crypto, what this means for decentralization, and what DeFi must fix before it can scale to the mainstream.

Watch the full debate here:

Drift Sets Out Token-Based Recovery Framework for $295M April Exploit

Drift Protocol on Tuesday published its user recovery plan for the April 1 exploit, laying out a token-based framework backed by exchange revenue, a Tether-led capital commitment, and partner contributions, with the Solana perpetuals exchange targeting a Q2 2026 relaunch.

Why it matters: Tether committed $127.5 million to Drift for its post-exploit recovery; in exchange, the perp DEX's primary settlement asset will switch to USDT.

Toncoin Surges as Telegram Takes Direct Control of TON Network

Toncoin (TON) rallied roughly 33% to an intraday high of $1.90 after Telegram founder Pavel Durov said the messaging app will replace the TON Foundation as the driving force behind The Open Network (TON) and become its largest validator.

Why it matters: The shift marks a sharp reversal for a project whose governance has long been deliberately separated from Telegram.

Securitize Taps Jump and Jupiter to Launch Regulated Trading for Tokenized Equities

Securitize has teamed up with Jump and Jupiter Exchange to launch fully on-chain, regulated trading for tokenized equities on Solana.

Why it matters: The launch caps a string of wins for Securitize, which was recently named the first digital transfer agent for the NYSE's upcoming Digital Trading Platform.