Kaito Token Tanks 20% as X Cuts Off InfoFi Platforms
Kaito's token price plummeted nearly 20% after X revoked API access for InfoFi platforms that rewarded users with cryptocurrency tokens for posting.
The decision was announced by Nikita Bier, X's head of product, who cited rampant AI-generated spam as the reason for the crackdown. Bier stated that the category of projects known as InfoFi had flooded the platform with automated content.
Kaito, one of the most prominent InfoFi platforms, saw its token drop from $0.70 to $0.55 following the announcement. The project used AI to analyze on-chain data and social sentiment, offering users points called 'yaps' for posting about cryptocurrency that could be converted into KAITO tokens.
The founder of Kaito announced the platform will abandon its Yaps reward system entirely in favor of a new marketing product called Kaito Studio. This move comes after discussions with X, where it was agreed that a fully decentralized content distribution system is no longer viable and does not meet the needs of high-quality brands or serious content creators.