KAITO Shuts Down Yaps, Launches Studio Amid X's Ban on Incentivized Posts

X’s new API policy has banned reward-based posting, forcing InfoFi projects like Kaito and Cookie to shut down or adapt their services. Kaito discontinued its Yaps program and announced Kaito Studio, a performance-based platform to replace it, in response to X’s policy. The move caused significant price drops for tokens like KAITO and COOKIE, highlighting the vulnerability of InfoFi models to centralized platform policies.

X’s decision to restrict reward-based content sharing has caused a seismic shift in the InfoFi ecosystem. Applications that incentivize users to create or share content have been impacted, with platforms like Kaito and Cookie DAO forced to suspend their features. The move by X’s head of product, Nikita Bier, aims to reduce spam and AI-generated content while improving user experience.

Kaito’s Yaps program, which rewarded users for creating content, no longer aligns with X’s new guidelines and has been discontinued. In response, Kaito has launched Kaito Studio, a curated and performance-based platform designed to attract serious creators and brands. This shift reflects the platform’s broader strategy to move beyond reward-driven models toward a more professionalized Web3 marketing service.

Cookie DAO also faced a significant impact, with its Snaps service ceasing operations after X revoked API access. Cookie DAO’s COOKIE token dropped over 17% as a result of the policy change. The sharp decline in token prices underscores the dependency of many InfoFi projects on centralized platforms and the risks posed by policy shifts.

What Is X’s Motivation for This Policy Change?

X’s decision to ban reward-based posting is part of a broader effort to improve content quality and reduce spam. The move aligns with global regulatory trends, such as the EU’s Digital Services Act and U.S. FTC guidelines, which aim to promote authentic engagement and reduce bot-driven activity. The policy is also seen as a response to concerns over AI-generated content degrading the user experience and distorting engagement metrics according to CoinDesk analysis.

Nikita Bier, X’s head of product, stated that the changes were necessary to curb spam and AI content, which had become a growing concern. However, the policy has had a direct impact on projects that rely heavily on user-generated content and incentivized sharing.

Kaito has taken a proactive approach by discontinuing Yaps and introducing Kaito Studio, a more selective, performance-based platform for creators and brands. The new platform emphasizes quality over quantity and is designed to align with global marketing standards. Kaito also plans to expand into real-world finance applications in 2026, moving beyond cryptocurrency as its core focus.

Cookie DAO, on the other hand, has chosen to shut down its Snaps service, which was heavily reliant on X’s API. The move highlights the challenges faced by InfoFi platforms in adapting to rapid policy changes. Analysts have noted that the policy shift underscores the need for decentralized alternatives that reduce dependency on centralized social media platforms.

Kaito founder Yu Hu explained that the company received legal notices from X on January 14 and resolved them in a timely manner. He emphasized that the decision to delay public statements was based on a need for further clarification and communication. The shutdown of Yaps does not affect other Kaito services, such as Kaito Launchpad or Kaito API.

What Does This Mean for the Future of InfoFi?

The policy change by X has raised questions about the long-term viability of reward-based social platforms in the InfoFi space. Many projects are now reevaluating their business models to reduce reliance on centralized APIs and explore decentralized alternatives.

The InfoFi market as a whole has seen a decline in value, with the market cap dropping 13% in response to X’s policy. This highlights the sensitivity of the sector to regulatory and platform-driven changes. Analysts suggest that the industry may see a shift toward more sustainable, performance-based models rather than token-based incentives.

Moving forward, Kaito’s transition to Kaito Studio represents a maturation of the Web3 marketing space, where platforms are moving away from open participation models toward professionalized services. The success of Kaito Studio will depend on its ability to attract serious creators and brands, as well as its capacity to integrate with multiple platforms beyond X.