InfoFi Hit as X Revokes API Access for Incentive Projects
- X revokes API access for InfoFi reward apps, linking them to spam and AI replies.
- Nikita Bier says token-paid posting harms content quality and drives inorganic engagement.
- ZachXBT flags AI spam campaigns, while Nic Carter backs tougher enforcement on X.
Elon Musk’s social platform X has moved to restrict crypto projects that pay users to post for token rewards. Product chief Nikita Bier said X will no longer allow such apps. He blamed the model for reply spam and low-quality AI content. X has also revoked API access for several projects linked to InfoFi incentive campaigns.
Bier said the crackdown targets InfoFi structures that attempt to financialize attention on X. He argued that token-linked posting rewards distort discussion quality and encourage inorganic engagement. He added that the user experience should improve as bots lose motivation. The platform expects automated spam accounts to slow down once income-focused posting stops.
KAITO Drops After X Crackdown Forces Kaito Reward System Overhaul
The market reacted quickly after the enforcement message spread. KAITO, the token tied to the Kaito AI protocol, fell sharply within the day. CoinMarketCap data showed the price sliding from about $0.70 to around $0.54 in roughly 24 hours, down by 20% over the past 24 hours.
In an X post, KaitoAI founder Yu Hu responded by announcing major changes inside Kaito’s reward system. He said Kaito is sunsetting Yaps and shutting down incentivized leaderboards. He presented the move as the start of “a new era” called Kaito Studio.
Hu described Yaps as a permissionless rewards layer for users and creators. It aimed to reward people for expanding brand visibility in public discussions. He said it reflected a Web3 ethos built around open access and merit-based ranking.
Over the last year, Hu said Kaito tested multiple upgrades to improve quality. He cited stricter eligibility requirements and higher leaderboard thresholds. He also referenced social filters and on-chain screening methods. Despite those efforts, he said spam and low-quality content continued across the wider crypto space.
Hu linked the continued problems to platform-level algorithm changes on X. He also pointed to other InfoFi projects launching with weaker thresholds. Some competing systems, he claimed, had no meaningful restrictions.
He said Kaito played a marketing role for many crypto teams. He also claimed the protocol helped with awareness building and user acquisition. Hu stated that Kaito onboarded hundreds of thousands of new users into crypto. He added that South Korea became the largest country by user base for Kaito.
Kaito Studio Shifts to Tier-Based Creator Deals as InfoFi Faces Backlash
Hu said the wider market is moving away from airdrop-style distribution and high-volume posting models. He argued that teams now prefer more targeted reward structures. He said Kaito heard this shift directly from project teams. He also said he observed changes in how rewards and creator campaigns are designed.
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Kaito Studio would move toward a tier-based marketing structure, according to Hu. Brands would select creators who meet defined criteria and deliver work under clear scopes. He said the platform would rely more on analytics and relevance.
Hu said the new model is designed to benefit high-quality creators more than mass posters. He claimed creators would gain more value through relevance-based matching. He also said creators who previously felt detached from Kaito could benefit.
He added that Kaito Studio aims for cross-platform reach beyond X. He listed YouTube and TikTok as expansion targets. He also described cross-vertical opportunities outside crypto, including finance and AI. Hu said the creator economy is worth more than $200 billion and Kaito wants to expand beyond its current bubble.
After X acted, criticism spread across the crypto community. On-chain investigator ZachXBT blamed some teams for running AI-generated spam through incentivized posting campaigns. The platform argued that reward models encouraged low-effort content at scale.
Commentator Nic Carter supported X’s enforcement stance. He urged the platform to keep removing sources of inorganic engagement. The response reflected rising frustration with spam-heavy campaigns. It also highlighted the growing conflict between InfoFi incentives and platform content integrity goals.
