X Cracks Down on Crypto Reward Apps, Sending Token Values Plummeting

X has banned applications that reward users for posting content on its platform, triggering an immediate loss in value for related tokens.

The move, announced by X product chief Nikita Bier on January 15, aims to eliminate AI-generated spam and 'a tremendous amount of AI slop and reply spam' across the platform.

KAITO, the native token of Kaito AI, dropped 20% from $0.70 to $0.56 following the announcement, while other engagement-based tokens such as COOKIE and LOUD fell by 15% and 16%, respectively.

Kaito's Yapybaras NFT collection saw floor prices collapse over 50% to 0.21 ETH, according to OpenSea data.