KAITO Token Slides 20% After X Bans Incentivized Posting Apps

X has banned reward-based apps that incentivize users to post content on its platform, citing concerns over AI-generated spam and poor user experience. The move is part of a broader strategy to improve content quality and reduce inauthentic engagement as detailed by Yahoo Finance. This decision has affected a significant portion of the crypto content ecosystem, particularly those operating within the InfoFi model according to Coindesk.

Kaito, a major InfoFi project, is pivoting away from its Yaps program, which rewarded users for engagement, and is introducing a new platform called Kaito Studio. The company's founder explained that the Yaps program no longer aligns with X's platform goals and that Kaito Studio will focus on curated content for serious creators and brands according to Bitcoin News. This shift marks a strategic pivot in response to X's revised API policies as reported by Crypto News.

The broader InfoFi sector is now facing an existential shift. The loss of API access has disrupted the core mechanics of several projects, including Cookie DAO, which is also shutting down its Snaps campaign. Traders and creators have responded by selling off tokens linked to these platforms, with KAITO falling over 20% and now trading more than 80% below its all-time high . The sector may need to adapt to a new model that focuses on platform-compliant partnerships rather than open tokenized rewards .

The impact on the KAITO token is significant, with the token now trading at a level more than 80% below its peak. This decline reflects investor concerns about the long-term sustainability of the InfoFi model and the regulatory and platform-specific risks associated with incentivized content creation .