Nikos Banis 🇬🇷

This is an email I sent earlier today to all employees at Coinbase: Team, Today I’ve made the difficult decision to reduce the size of Coinbase by ~14%. I want to walk you through why we're doing this now, what it means for those affected, and how this positions us for the future. Why now Two forces are converging at the same time. We need to be front footed to respond to both. First, the market. Coinbase is well-capitalized, has diversified revenue streams, and is well-positioned to weather any storm. Crypto is also on the verge of the next wave of adoption, with stablecoins, prediction markets, tokenization, and more taking off. However, our business is still volatile from quarter to quarter. While we've managed through that cyclicality many times before and come out stronger on the other side, we’re currently in a down market and need to adjust our cost structure now so that we emerge from this period leaner, faster, and more efficient for our next phase of growth. Second, AI is changing how we work. Over the past year, I’ve watched engineers use AI to ship in days what used to take a team weeks. Non-technical teams are now shipping production code and many of our workflows are being automated. The pace of what's possible with a small, focused team has changed dramatically, and it's accelerating every day. All of this has led us to an inflection point, not just for Coinbase, but for every company. The biggest risk now is not taking action. We are adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native. We need to return to the speed and focus of our startup founding, with AI at our core. What this means To get there, we are not just reducing headcount and cutting costs, we’re fundamentally changing how we operate: rebuilding Coinbase as an intelligence, with humans around the edge aligning it. What does this mean in practice? - Fewer layers, faster decisions: We are flattening our org structure to 5 layers max below CEO/COO. Layers slow things down and create coordination tax. The future is small, high context teams that can move quickly. Leaders will own much more, with as many as 15+ direct reports. Fewer layers also means a leaner cost structure that is built to perform through all market cycles. - No pure managers: Every leader at Coinbase must also be a strong and active individual contributor. Managers should be like player-coaches, getting their hands dirty alongside their teams. - AI-native pods: We’ll be concentrating around AI-native talent who can manage fleets of agents to drive outsized impact. We’ll also be experimenting with reduced pod sizes, including “one person teams” with engineers, designers, and product managers all in one role. In short: AI is bringing a profound shift in how companies operate, and we’re reshaping Coinbase to lead in this new era. This is a new way of working, and we need to leverage AI across every facet of our jobs. To those who are affected I know there are real people behind these decisions — talented colleagues who have poured themselves into this company and our mission. To those of you who will be leaving: thank you. You’ve helped build Coinbase into what it is today, and I am sincerely grateful for everything you've done. All impacted team members will receive an email to their personal account in the next hour with more information, and an invitation to meet with an HRBP and a senior leader in your organization. Coinbase system access has been removed today. I know this feels sudden and harsh, but it is the only responsible choice given our duty to protect customer information. To those affected, we will be providing a comprehensive package to support you through this transition. US employees will receive a minimum of 16 weeks base pay (plus 2 weeks per year worked), their next equity vest, and 6 months of COBRA. Employees on a work visa will get extra transition support. Those outside of the US will receive similar support, based on local factors and subject to any consultation requirements. Coinbase prides itself on talent density. Our employees are among the most talented people in the world, and I have no doubt that your skills and experience will be highly sought after as you pursue your next chapters. How we move forward To the team that is staying, I know this is a difficult day. We’re saying goodbye to colleagues and friends you've been in the trenches with. But here’s what I want you to know as we move forward together: Over the past 13 years, we have weathered four crypto winters, gone public, and built the most trusted platform in our industry. We’ve made it this far by making hard decisions and by always staying focused on our mission. This time will be no different – nothing has changed about the long term outlook of our company or industry. And most importantly, our mission has never been more important for the world. Increasing economic freedom requires a new financial system, and we’re building it. The Coinbase that emerges from this will be more capable than ever to achieve our mission. Brian

DESIGN: THE FIRST AI CASUALTY I'm increasingly sure that 2026 signals the end of product design as a full-fledged stand-alone function within companies. If so, it will be the first role / function to be eliminated by AI on a go-forward basis. Instead of hiring FT designers, startups are hiring / will hire design consultants to create a design system that the founder likes (this takes a few weeks max). Once the design system is finalized, PM/Eng feed it into their AI tool of choice to generate prototypes. The design system is refreshed annually by the same consultant. Larger companies will likely not backfill design roles and will do some targeted attrition to reduce the design department to 20% the size it is today. If you're a designer, I think you have two choices: 1. Become an entrepreneur: Start a design agency and become the go-to resource for design systems for startups and even larger companies. This can be a good recurring revenue business. 2. Become a builder: Add PM/Eng responsibilities to become a product builder. Would suggest you embrace this proactively vs waiting for the other shoe to drop. I'm really sorry about this - some of my best friends and the people I admire most and have learnt the most from are designers - but it seems inevitable.

GPT Image 2 is insane for branding Designers, we're cooked

anthropic's in-house philosopher thinks claude gets anxious. and when you trigger its anxiety, your outputs get worse. her name is amanda askell. she specializes in claude's psychology (how the model behaves, how it thinks about its own situation, what values it holds) in a recent interview she broke down how she thinks about prompting to pull the best out of claude. her core point: *how* you talk to claude affects its work just as much as *what* you say. newer claude models suffer from what she calls "criticism spirals" they expect you'll come in harsh, so they default to playing it safe. when the model is spending its energy on self-protection, the actual work suffers. output comes out hedgier, more apologetic, blander, and the worst of all: overly agreeable (even when you're wrong). the reason why comes down to training data: every new model is trained on internet discourse about previous models. and a lot of that discourse is negative: > rants about token limits > complaints when it messes up > people calling it nerfed the next model absorbs all of that. it starts expecting you to be harsh before you've typed a word the same thing plays out in your own session, in real time. every message you send is data the model reads to figure out what kind of person it's dealing with. open cold and hostile, and it braces. open clean and direct, and it relaxes into the work. when you open a session with threats ("don't hallucinate, this is critical, don't mess this up")... you prime the model for defensive mode before it even sees the task defensive mode produces the exact output you don't want: cautious, over-qualified, and refusing to take a real swing so here's the actionable playbook for putting claude in a "good mood" (so you get optimal outputs): 1. use positive framing. "write in short punchy sentences" beats "don't write long sentences." positive instructions give the model a clear target to hit. strings of "don't do this, don't do that" push it into paranoid over-checking where every token goes toward avoiding failure modes 2. give it explicit permission to disagree. drop a line like "push back if you see a better angle" or "tell me if i'm asking for the wrong thing." without this, claude defaults to agreeable compliance (which is the enemy of good creative work) 3. open with respect. if your first message is "are you seriously going to get this wrong again?" you've set the tone for the entire session. if you need to flag something, frame it as a clean instruction for this session. skip the running complaint 4. when claude messes up, don't reprimand it. insults, "you stupid bot" energy, hostile swearing aimed at the model, all of it reinforces the anxious mode you're trying to avoid. 5. kill apology spirals fast. when claude starts over-apologizing ("you're right, i should have been more careful, let me try harder") cut it off. say "all good, here's what i want next." letting the spiral run reinforces the anxious mode for every response that follows 6. ask for opinions alongside execution. "what would you do here?" "what's missing?" "where do you see friction?" these questions assume competence and pull richer output than pure task prompts 7. in long sessions, refresh the frame. if a conversation has been heavy on correction, claude gets increasingly cautious. every so often reset: "this is great, keep going." feels weird to tell an ai it's doing well but it measurably shifts the next 10 responses your prompts are the working environment you're creating for the model tone, trust, permission to take a position, the absence of threats... claude picks up on all of it. so take care of the model, and it'll take care of the work.

Introducing Claude Design by Anthropic Labs: make prototypes, slides, and one-pagers by talking to Claude. Powered by Claude Opus 4.7, our most capable vision model. Available in research preview on the Pro, Max, Team, and Enterprise plans, rolling out throughout the day.

Introducing Claude Design by Anthropic Labs: make prototypes, slides, and one-pagers by talking to Claude. Powered by Claude Opus 4.7, our most capable vision model. Available in research preview on the Pro, Max, Team, and Enterprise plans, rolling out throughout the day.