KAITO Tokens Plunge as X Bans Incentivized Posting Apps

• KAITO tokens dropped 14% to 20% following X's API policy overhaul that revoked access for incentivized posting applications according to reports.
• X's new policy aims to reduce spam and AI-generated content by banning apps that reward users for posting as reported.
• Kaito has announced the shutdown of Yaps and its incentive ranking system, aligning with X's restrictions on third-party apps according to the announcement.

X has taken decisive action to curb the spread of spam and AI-generated content by implementing an API policy overhaul. This move directly targets incentivized posting applications, which have been criticized for contributing to bot content and misleading user engagement according to analysis. The policy change has significantly affected platforms like Kaito that rely on user-generated content for trending subject analysis in the crypto space as detailed.

The impact of these changes has been immediate and severe. Kaito's KAITO tokens experienced sharp declines, with losses ranging from 14% to 20% across multiple reports according to data. The project has also announced the discontinuation of its Yaps platform and its incentive ranking system, marking a major strategic shift. Kaito plans to launch Kaito Studio, a tiered marketing platform for brand-creator collaborations, as part of a broader effort to move away from cryptocurrency incentives as announced.

What Is the Impact on the InfoFi Ecosystem?

X's decision to restrict access for incentivized posting apps has triggered widespread disruption in the InfoFi ecosystem. Projects that rely on user participation for content creation and engagement have been forced to adapt or shut down. Tokens like KAITO have been among the hardest hit, with price drops exceeding 15% immediately after the policy change according to reports. Analysts suggest that the long-term effects could include migration to decentralized platforms or a pivot toward more sustainable business models as observed.

What Is Kaito's New Strategic Direction?

Kaito's founder, Yu Hu, has outlined a new strategic direction for the platform following the API changes. The company will shut down its Yaps platform and introduce Kaito Studio, a professional marketing platform with tiered partnerships and selective creator collaborations as detailed. This move reflects a broader maturation of Web3 platforms, which are transitioning from token-based incentives toward more structured, professional services according to industry analysis. The new platform aims to provide reliable marketing solutions tailored to cryptocurrency and blockchain companies as reported.

What Are the Broader Implications for Platform Governance?

X's API policy overhaul highlights a growing trend in platform governance, where control over user engagement and content quality is prioritized over financial incentives. This shift reflects a larger movement within the digital landscape, where platforms are increasingly restricting third-party access in favor of first-party revenue streams according to industry reports. Developers now face the challenge of adapting to these new rules or exploring decentralized alternatives. The policy also underscores the tension between decentralized innovation and centralized governance as noted.

• The changes to X's API are expected to influence regulatory discussions around AI-generated content and platform accountability .
• The Kaito transition to Kaito Studio may set a precedent for other InfoFi platforms to follow as reported.
• Investors and users of InfoFi platforms are advised to closely monitor platform policy changes and market reactions according to analysis.