KAITO Drops 17–20% After X Bans InfoFi Projects

• KAITO dropped 17–20% following X’s API restrictions targeting reward-based posting platforms like Kaito and Cookie. According to reports
• X cited issues such as spam, AI-generated content, and degraded user experience as the rationale for the ban as stated in reports.
• This policy change disrupted the core mechanics of Kaito’s and similar platforms’ operations, triggering sharp token price declines.

Kaito founder Yu Hu announced the discontinuation of YAPS and the incentive-based rankings, shifting to a new marketing-focused platform called Kaito Studio according to announcements.

The new model will prioritize structured collaboration and quality-driven content, moving away from token-based incentives as detailed in coverage.

X advised developers to transition to platforms like Threads or Bluesky, reflecting a broader industry shift in content monetization and platform control according to analysis.

Kaito Studio will function as a tiered marketing platform, enabling brands to selectively collaborate with creators meeting predefined criteria as reported.

This transition aligns with industry trends as platforms seek to address challenges like inconsistent messaging and variable content quality in blockchain marketing according to industry analysis.

The incident has sparked broader discussions about the sustainability of InfoFi models and the need for multi-platform strategies to mitigate risks as observed.

Investors are monitoring Kaito Studio’s success in attracting high-quality creators and delivering clear returns on investment according to coverage.