X Cracks Down on Crypto Reward Apps

X has revoked API access for applications that reward users for posting content on its platform, triggering losses across Information Finance (InfoFi) tokens.

The move was made to eliminate AI-generated spam and 'a tremendous amount of AI slop and reply spam' as described by X product chief Nikita Bier. KAITO, the native token of AI-driven InfoFi protocol Kaito AI, dropped 20% from $0.70 to $0.56 following the January 15 announcement.

The policy change targeted so-called InfoFi platforms that track user engagement through X's API and distribute crypto rewards based on posting activity and interactions.

Kaito's founder Yu Hu announced that the project would sunset its Yaps rewards program and transition to Kaito Studio, a tier-based marketing platform. The new model targets selective partnerships with content creators across multiple platforms including YouTube and TikTok.