KAITO Token Plummets After X Banned Incentive-Based Posting Apps

• Kaito has discontinued its Yaps program in response to X's policy banning apps that reward users for posting content, which aims to reduce spam and improve content quality according to reports.

• The move has triggered a sharp decline in the KAITO token, dropping nearly 20%, as it directly affects the token's real-world utility and demand as financial data shows.

• Kaito is shifting its focus to Kaito Studio, a selective and performance-driven marketing platform, in an effort to align with X's updated policies and reduce reliance on incentive-based models as reported.

Why Did X Ban Incentive-Based Apps?

X's updated policy prohibits apps from rewarding users for posting content, aiming to reduce AI-generated spam and low-quality content according to platform updates. The platform's head of product, Nikita Bier, stated that the policy aligns with broader regulatory and industry trends prioritizing quality over quantity as cited by industry analysis.

What Is Kaito's New Strategy to Complement the Policy Changes?

Kaito announced the launch of Kaito Studio, which focuses on vetted brand-creator partnerships and cross-platform marketing, reducing reliance on mass incentives according to company announcements. The company is also planning to expand into real-world finance applications in 2026 as reported by industry observers.

• Critics have long argued that paying users to post encourages attention farming and automated content as analytics show. The move has also exposed the vulnerability of token-based models built on single-platform policies according to technical analysis.

• Kaito founder Yu Hu stated that the new Kaito Studio platform had been in preparation for several months and was originally planned as a supplement to the Yaps model according to company statements. The closure of Yaps will allow Kaito Studio to become the core of the cross-platform business in 2026 as reported.

What Are the Market Implications of X's Policy Changes on KAITO and InfoFi?

The market reaction to X's policy has been significant, with the KAITO token dropping around 24% in 24 hours, as the token's value was heavily tied to the Yaps program according to market analysis. The broader InfoFi market cap also dropped by 13% in the wake of X's policy as financial data indicates.

• The InfoFi sector now faces an existential shift as the attention economy on X moves from open tokenized rewards to curated, platform-compliant partnerships as industry analysis indicates.

• X encourages affected developers to transition to platforms like Threads or Bluesky, highlighting a potential migration of the InfoFi community away from X according to platform guidance.

• Kaito's founder emphasized that the change is necessary for maintaining relationships with serious brands and creators according to company messaging.

• Retail investors have expressed concerns over the timing of Kaito's internal actions, including a significant token deposit to Binance just days before the announcement, which has led to speculation about the company's confidence as reported.

• Technical indicators for the KAITO token, such as MACD and Chaikin Money Flow, support a bearish outlook following the price drop below a key trendline according to technical analysis.