X Ends InfoFi Apps, Kaito Shifts to Creator Marketing Platform

X has banned InfoFi apps that reward users with crypto tokens for posting, revoking their API access. This move aims to reduce AI-generated spam and improve user experience.

  • Developer connections were revoked immediately as per Nikita Bier's announcement.
  • The ban impacts communities like the 157K-member Kaito Yappers, who earned tokens through posts.
  • Nansen CEO Alex Svanevik sees the decision as beneficial for the crypto Twitter community.

KAITO Token Drops 15% on Ban News

  • KAITO price fell by 15.36% to $0.57 following the announcement.
  • Trading volume surged by 115% to $138.5 million.
  • The token is now 80% below its all-time high of $2.88.
  • Weekly trading volume rose to $521 million, a 163% increase.

KAITO token price chart 1H | Source: TradingView

Kaito Announces Business Model Pivot

  • Kaito founder Yu Hu announced the end of Yaps and incentivized leaderboards.
  • New product, Kaito Studio, will be a tier-based marketing platform partnering with creators.
  • Kaito Studio will extend beyond X to YouTube and TikTok, covering finance and AI sectors.
  • Korea remains Kaito's largest market. KAITO token will continue playing a role in Studio.

Bot Spam Crisis Preceded Ban

  • A significant spike in automated posts was observed before the ban.
  • CryptoQuant CEO Ki Young Ju reported bots generated 7.75 million crypto-related posts, marking a 1,224% increase.
  • InfoFi model, including platforms like Kaito and Galxe, criticized for promoting low-quality content.