X bans InfoFi apps, KAITO token drops over 20%

X banned InfoFi apps that reward posting, causing KAITO and similar tokens to drop over 20%. Kaito is now shifting focus to a new marketing platform.

X, formerly known as Twitter, has updated its developer API policies to ban applications that incentivize users for posting. This move specifically targets InfoFi projects, which have been accused of generating spam and low-quality content. Following the announcement by X's product lead, Nikita Bier, the KAITO token—native to the InfoFi network—plummeted from $0.70 to about $0.56, a drop of over 20%. Other InfoFi tokens, such as COOKIE and LOUD, also saw significant declines. The enforcement led to revoked API access for affected apps, while X offered support for developers to migrate to platforms like Threads or Bluesky. The InfoFi sector's total market capitalization decreased by 11.5%. In response, Kaito announced it would discontinue Yaps and incentivized leaderboards, shifting its focus to Kaito Studio, a tiered marketing platform. This marks a major shift in X's approach to content moderation and anti-spam measures.