X Bans Crypto Reward Apps Amidst AI Spam Crackdown
X, the platform formerly known as Twitter, has banned crypto reward apps that use its API to incentivize users for posting content. This move aims to eliminate AI-generated spam on the platform.
Kaito, a token tied to an InfoFi protocol, dropped by 20% in value following X's announcement on January 15. The native token of Kaito AI, it fell from $0.70 to $0.56 as users reacted to the policy change.
The ban affected various tokens, including Cookie DAO's COOKIE and LOUD, which saw declines of 15% and 16%, respectively. Even Kaito's Yapybaras NFT collection experienced a significant drop in floor prices, plummeting over 50% to 0.21 ETH.
X product chief Nikita Bier clarified that the affected developers were already paying millions for Enterprise API access. He emphasized that X rejected their business model entirely rather than seeking additional revenue.