Key Takeaways
- KAITO token value dropped 20% following X’s policy update.
- X announced it would block apps that reward users for posting, known as ‘InfoFi’ apps.
KAITO, the native token of the InfoFi protocol Kaito AI, fell 20% today after X announced it would block apps that reward users for posting on the platform. The token dropped from $0.7 to $0.56 following the policy change announcement, per CoinGecko.
The sell-off extended to the Yapybaras – Kaito Genesis NFT collection, which saw its floor price collapse over 50% to 0.21 ETH, according to OpenSea.
X’s Head of Product Nikita Bier announced the crackdown via his official X account:
“We are revising our developer API policies: We will no longer allow apps that reward users for posting on X (aka ‘infofi’). This has led to a tremendous amount of AI slop & reply spam on the platform.”
Bier added that X has revoked API access from these apps, stating that users’ “X experience should start improving soon (once the bots realize they’re not getting paid anymore).”
In a pointed sign-off, Bier addressed affected developers: “If your developer account was terminated, please reach out, and we will assist in transitioning your business to Threads and Bluesky.”
This is a developing story.
