KAITO Shifts Strategy After X Bans InfoFi Projects, Token Drops 17%

• Kaito's KAITO token dropped 17% after X, formerly known as Twitter, banned InfoFi projects from rewarding users for posts.
• X's move reflects growing concerns over AI-generated content and the platform's authenticity.
• Kaito announced it would discontinue its "yapping" social product and pivot to a more selective creator marketing platform.

X's decision to ban reward-based content from InfoFi projects has raised concerns over the platform's authenticity and the prevalence of AI-generated content. Kaito founder Yu Hu stated the company will transition to Kaito Studio, a tier-based marketing platform. The shift reflects an effort to align with X's revised API policies and reduce spam.

According to RootData, Kaito will unlock approximately 2.86 million tokens on January 20 at 12:00 UTC+8. This event may influence token supply dynamics and liquidity for investors. Meanwhile, Goldman Sachs is exploring how crypto and tokenization can integrate into its business strategy.

What Caused KAITO's Drop and Strategic Shift?

The 17% drop in KAITO's value was directly tied to X's decision to ban InfoFi projects from incentivizing posts. This move was intended to curb spam and AI-generated content. Kaito responded by discontinuing its Yaps product and focusing on a more controlled creator marketing model.

What Is the Implication of the Token Unlock on January 20?

The unlocking of 2.86 million tokens on January 20 could impact token distribution and liquidity. Investors are advised to monitor this event for potential effects on supply and price. This development may also influence market sentiment ahead of the unlock date.

What Is the Broader Context of Crypto and Institutional Adoption in 2026?

Goldman Sachs is exploring how crypto, tokenization, and prediction markets can become part of its broader strategy. Societe Generale's digital asset division, SG-FORGE, is also leveraging MiCA-compliant stablecoins to settle tokenized bonds. JPMorgan reported that crypto fund inflows reached $130 billion in 2025, with expectations of continued institutional-led growth in 2026 .

Institutional confidence is being supported by regulatory clarity, particularly in the U.S., and improved market infrastructure . Regulatory developments, like the proposed U.S. CLARITY Act, are seen as key drivers for institutional adoption . As digital asset markets mature, traditional financial institutions are increasingly adapting to incorporate crypto into their offerings.