Kaito to Discontinue Yaps and Incentivized Leaderboard, Launch Kaito Studio

Kaito, a crypto-focused analytics and marketing platform, announced the discontinuation of its Yaps service and incentivized leaderboards. The company will replace these features with a new product, Kaito Studio, which focuses on analytics, creator relevance, and brand alignment. This move reflects the company's response to persistent spam and declining signal quality in the open reward system according to reports.

The decision aligns with broader changes in the crypto and social media landscape. X, formerly known as Twitter, has moved to restrict apps that incentivize users to post content. These restrictions have had a significant impact on the InfoFi model, which relies on reward-based engagement.

Kaito cited the growing difficulty of maintaining a quality-driven experience in an open, reward-based posting system. The company said it has explored various approaches to combat spam and low-quality content, including tighter eligibility rules and filters, but found the challenges persistent.

Why Did This Happen?

Kaito's decision to sunset Yaps reflects the challenges of managing an open, token-based reward system. The company said it learned from these challenges and decided to adopt a more selective and analytics-focused model. This shift is consistent with X's own policy changes, which aim to curb spam and AI-generated content.

The new platform, Kaito Studio, is designed to pair vetted creators with brands using cross-platform analytics. This approach moves away from the previous open participation model and toward a more structured, performance-based system.

How Did Markets React?

The announcement had an immediate impact on Kaito's token. Following the policy change from X and Kaito's response, the KAITO token fell more than 17% in a short period. This drop mirrored broader declines in the InfoFi space, which saw its market cap fall by over 13% in the 24 hours after the X policy change.

Investors and analysts noted that the token's decline underscored the close relationship between crypto projects and the policies of major social platforms. The Kaito token's performance also raised questions about the sustainability of reward-based posting models.

What Are Analysts Watching Next?

Some users and analysts have raised concerns about the transition. Critics questioned whether the new model would maintain fairness and accessibility for creators. Others expressed skepticism about whether the new system would prevent the same issues that plagued the previous reward model.

Kaito's decision may set a precedent for other InfoFi projects. Analysts are watching how the broader crypto and social media ecosystem adapts to these changes. The shift from open incentive models to more structured, analytics-driven approaches could shape the future of content creation and brand engagement in the crypto space.

Kaito said the transition will not affect its other products, including Kaito Pro, Kaito API, and Kaito Launchpad. The KAITO token will continue to play a role in the new platform, with further details to be shared later.

The company emphasized that the move represents a strategic repositioning rather than a retreat from the crypto space. Kaito's new approach is expected to align more closely with mainstream finance and digital media trends, as well as the policies of major social platforms.